Sime going big in Australia

Sime going big in Australia

By S.C.Cheah

SIME DARBY Bhd has invested A$120mil in properties in Perth and the Gold Coast, making Australia the group's biggest foreign property investment.

This amount includes the recent acquisition of 250 acres of prime freehold land in Oyster Cove in the north of Gold Coast in Queensland for an “attractive” A$20mil.

Its property division plans to re-develop the decade-old Oyster Cove into an even more exclusive waterfront resort where purchase of the homes is by invitation only.

“Australia has a lot of potential. Even as we are talking, our team is in Gold Coast now.

“We are going to re-launch the project where you can buy an affordable home with a swimming pool and pontoon and where you can moor your boat or yacht at the back of your house and sail out into the ocean,” said Sime Darby Property divisional director Jauhari Hamidi.

The Oyster Cove project is the division's first overseas joint venture with Brunsfield Corp Sdn Bhd. They have also teamed up to develop the RM500mil Oasis Ara Damansara and Subang Avenue serviced suites, both in Selangor.

Jauhari said the three properties in Perth included a 60-unit serviced apartment in Quest Margaret River that is targeted at people who love the countryside and a 48-unit apartment called Quest Subiaco Apartments in the Subiaco shopping, dining and entertainment area.

There is also the 1,000-acre Karri Valley Resort in Perth that the group acquired about 10 years ago.

“We acquired the resort at a favourable price and the property has now appreciated in value. The resort enjoys a very healthy occupancy rate and soon it will undergo a refurbishment programme for both rooms and facilities.”

“We have about 200 acres to develop. We are planning to build another serviced apartment catering to young travellers who are looking for affordable and value-for-money accommodations.”

Jauhari said the division is also looking at opportunities in Melbourne and Sydney properties.

“We also have India on our radar screen where there is potential for growth in places like Hyderabad. We have been approached by several parties in India and we are keeping our options open,” he added.

He said Vietnam also had a lot of potential despite the higher prices of land as compared with Kuala Lumpur.

“We are looking at Hanoi and Ho Chi Minh City. They are like Kuala Lumpur 10 to 15 years ago,” he said.

In China, its Richmond Park in Beijing has also been very well received with both Phase 1 and 2 sold out. “The apartments are bought mainly by the locals. You'll be surprised at the many developments in China but the property market is actually not saturated,” he said.

The division's strategy is to spread its portfolio in terms of products and geographical locations instead of being subjected to the vagaries of one country. Its overseas investment strategy is to initially have a small equity in a local outfit and later increase that equity or interest when the investment proves to be sound.

“We are excited about new and vast opportunities abroad but we are also very cautious. We will make our move, given the right premise and opportunity,” he said.