Hong Kong car dealer motors into Sydney
Hong Kong-listed car retailer Yongda Auto is entering Australia’s property market through its investment arm Shanghai Yongda Investment Holding Group, buying a 40% stake in Chinese developer Chiwayland’s apartment project in the northern Sydney suburb of Ryde.
This could indicate that Chinese companies, including those who are not traditional developers, are still keen to gain a foothold in the Australian market despite concerns about a slowdown.
Yongda has bought the stake in Chiwayland’s Ryde project at 771-775 Victoria Rd, according to a statement lodged by the Singapore-listed developer.
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Under the agreement, Yongda will inject $4 million to develop the project along with Chiwayland, and will provide an additional $6 million as a shareholder’s loan.
Chiwayland has lodged a $37 million development application to build 95 apartments across two blocks on the 2980sqm prime site at the corner of Victoria Road and Delvin Street. An approval is expected by the end of the year.
It’s just business as usual. We are focused on our current projects now and will do our best to deliver
The company acquired the land, which is currently operated as a car dealership, for $18.6 million earlier this year.
The disposal of the interest was consistent with the company’s Australian strategy of forming partnerships in development projects, said Chiwayland Australia director Brian Chen.
“It’s just business as usual. We are focused on our current projects now and will do our best to deliver,” Chen says.
Chiwayland was previously looking to sell its planned 138m residential project at Parramatta, but only at an “ideal” price, Chen said earlier this year. The company could seek a partner to jointly develop the project.
Yongda, based in Shanghai, is China’s leading car dealership operator and has been ranked among the top 500 Chinese enterprises.
This article originally appeared on www.theaustralian.com.au/property.
