A foreign investment company (FIC) has entered into a memorandum of understanding with a Perth-based property developer that will see it become a joint venture entity in Australia.
A memorandum of the understanding was signed on Wednesday with developer Mark Reederer.
“The agreement is to provide a limited degree of ownership in the development, operation and management of the property, including all operations and management decisions, subject to the approval of the relevant authority in Australia,” Reederer’s company said in a statement.
It is not clear when the deal is to take effect.
It was not immediately clear if the FIC would be the sole entity in the partnership or if it would be owned by one or more other parties.
A spokeswoman for the Australian Competition and Consumer Commission said the commission was not involved in the deal.
“It is the role of the Commission to oversee competition and consumer protection and is committed to ensuring that Australian consumers are protected from unfair and deceptive conduct,” the spokeswoman said.FIC said in its statement it was in the process of reviewing the arrangement and was awaiting the outcome of the review.
The company also confirmed the agreement with Reederer had been signed with the Commonwealth government.
“Australia has a well-developed legal framework for foreign investment and FIC will continue to seek approvals from relevant authorities,” the statement said.
The partnership, which was first announced last year, will have a 25 per cent stake in the property.
Reederer said he was “delighted” to be a part of the deal and was confident the agreement would work.
“This is a significant milestone in our development of the project, and I’m confident it will help us grow the project,” Reeder said.
“In addition to being able to take advantage of the Australian dollar, we will have access to our expertise in international real estate.”
We’re thrilled that we can be part of a company that is building our own Australian property, as we’re excited about this project.