Singapore-based City Developments is believed to be closing in on the Leighton Holdings-backed residential developer Devine.
The Brisbane-based company is almost half-owned by construction giant Leighton.
Leighton flagged its intention to exit its stake as part of a wider selldown of its assets and the entire business was subsequently placed on the market through investment bank Goldman Sachs.
While the price being offered by City Developments is unclear, it is understood its offer was substantially higher than the one from its rival suitor, Proprium Capital Partners, an entity controlled by Morgan Stanley’s real estate arm.
Devine was expected to sell for close to 10 per cent below the company’s net tangible assets of $245 million.
City Developments is also circling Leighton Properties, which is up for sale through Bank of America Merrill Lynch and has been named as the frontrunner to secure the subsidiary.
The business, which has a $7bn development pipeline, is mooted to sell for about $500m.
Meanwhile, an agreement could be in the offing between Leighton, which is almost 70 per cent controlled by German group Hochtief, and China Communications Construction Company, surrounding the sales process for contractor John Holland. It is understood rival bidder Samsung has left the contest, leaving CCCC as the only contender.
This article first appeared in The Australian Business Review.