SINGAPORE (Nov 20): Roxy Pacific is proposing to acquire a freehold property based in Melbourne, Australia, for A$74.14 million ($76.1 million) via its new joint venture (JV) company, TE2 Roxy Australia.

The property, which is located minutes from Melbourne’s Central Business District (CBD) at 312 St Kilda Road, Southbank, comprises an office building with lower- and ground-level accommodation; a conference centre; six upper levels of commercial office accommodation; and four levels of basement car parking.

It is situated on a site area of 1,906 sqm with a net lettable area (NLA) of about 9,854 sqm.

Thus far, A$7 million of the consideration sum, which is to be funded by internal funds and bank borrowings, has been paid.

In a Monday aftermarket announcement, Roxy Pacific’s board of directors says it believes the property presents a prime investment opportunity, and has potential to be a stable source of income for the group.

Roxy’s indirect wholly-owned subsidiary, Roxy-Pacific Investments, recently subscribed for 45 shares representing a 45% stake in TE2 Roxy Australia for A$45, given the issue price of A$1 per share.

The remaining 55% shareholding interest belongs to TE2 Gateway, a private family office unit of Tong Eng Group’s group managing director, Teo Tong Lim.

This story, written by Michelle Zhu, first appeared on The Edge Singapore.