SINGAPORE (Nov 29): Lian Beng Group on Tuesday announced the proposed acquisition of a freehold property in Melbourne, Australia for A$51.5 million ($54.9 million).

Lian Beng’s wholly-owned subsidiary, Lian Beng Realty, entered into 16 contracts of sale of real estate with 11 vendors for the proposed acquisition of the property at 50 Franklin Street.

Located in Melbourne’s central business district, the property has a net lettable area of approximately 11,447 sq m, with an 18-storey office building comprising 18 strata lots.

In an SGX filing on Tuesday, Lian Beng says the acquisition is “in line with one of the Group’s core business activities in property development and investments” and “a good opportunity to participate in a strategic investment”.

It adds that the Group expects to derive rental returns which will be added to Group earnings.

Shareholders’ approval is not required for the proposed acquisition.

Lian Beng Group says the purchase will be funded through bank borrowings and internal resources.

The purchase is not expected to have any material impact on the financial performance of the Company and its subsidiaries for the current financial year ending May 31, 2017.

Shares of Lian Beng closed flat at 44.5 cents on Tuesday.