Beulah International, a Malaysian-owned company, which is launching a project expected to become an iconic landmark in Melbourne, is facing a major setback. The construction proposed $2.7 billion development two-tower project, named STH BNK By Beulah, in the Southbank area of Melbourne, have been canceled due to unexpected and significant construction cost increases. Beulah International’s founder and managing director, Chan Ji, stated that the company is now considering three potential rescue options for the project.

“The prolonged shutdowns during the pandemic led to significant cost increases and supply chain disruptions. STH BNK By Beulah was not immune to the market fluctuations, and Beulah, like many other developers, has been navigating the construction landscape as best as possible and working to adapt after construction costs spiked by up to 30% in just 12 months,” said Chan.

He further explained that the company is currently exploring parallel strategies, with the first being raising capital for the project by “locking in contractors to activate construction financing to ensure stability, seeking joint venture partners, and exploring new opportunities for the site.” Ultimately, the company may choose to divest the site.

“All three options are being explored, and once the campaign is concluded, we will select the most suitable option,” Chan added.

Construction was initially set to begin earlier this year for the project, which consists of a 102-storey tower and a 63-storey tower atop a seven-level podium at the former BMW showroom site at 58 Southbank Boulevard. However, work has not yet commenced. On 11 February, BSSPV Pty Ltd, the project management entity for the STH BNK project, was placed into voluntary administration—similar to judicial management under local laws—after the project’s architectural firm filed a winding-up order against it.

Chan clarified that there is a separate landowner entity unaffected by the administration, and other Beulah projects remain unaffected and continue to operate as usual.

Then, on 19 March, creditors of BSSPV Pty Ltd voted unanimously to implement a Deed of Company Arrangement (DOCA), which is expected to be completed within 15 working days. This will restore control to the company directors, allowing the project to move forward once it exits administration.

“It is important to note that BSSPV has been misinterpreted in several Australian media reports,” Chan explained.

When asked whether it was true that the boutique asset management firm Open Capital had discussed with Beulah about the potential purchase of the troubled STH BNK project or to buy the primary backer of the project, Malayan Banking Bhd (Maybank), Chan said: “Beulah is currently exploring alternative financing for STH BNK and is in discussions with several good local and international capital partners. We are unable to disclose names [as we] are still working through these options.”

A spokesperson for Maybank commented: “The allegation that Maybank has lost billions of ringgit [in the STH BNK project] is untrue. However, we cannot provide further comments on any customer matters due to confidentiality. Maybank has made all necessary financial disclosures as required, which are reported quarterly and annually.”

STH BNK Project Delays

The STH BNK By Beulah project has garnered significant interest both domestically and internationally. “We recognized the uniqueness of this site when we acquired it in late 2017. It is a prime site located in the heart of Southbank, near the bustling CBD and Arts Precinct,” said Chan.

The site was sold by BMW in 2017 through an international tender, and Beulah purchased it for A$101 million, later acquiring an additional 0.37-acre site for an undisclosed amount.

Beulah reported total sales of RM1.2 billion during the launch on 2 April 2022, marking the highest sales value in a single day for an apartment launch in Australia and Malaysia’s history. This sales figure included a sub-penthouse worth RM110 million covering 10,800 square feet, which is the most expensive apartment in Melbourne to date.

In November 2023, Beulah International was reported to have sold approximately 80% of its apartments, although the sales price did not cover the construction costs. Founded in 2009, Beulah International is reported to have a portfolio of at least 14 projects, including mixed-use developments, high-rise apartments, and townhouses.

On 10 February this year, Fajar Baru Builder Group Bhd (FBG), through its entity FBG Land Sdn Bhd (FLSB), increased its stake in Australian property developer Beulah Northcote Land Pty Ltd (BNL) to 49% by acquiring 2.56 million shares worth A$2.56 million. The group stated that this acquisition is part of FLSB’s strategy to maintain joint control over BNL and support its working capital requirements for ongoing property development projects. It remains unclear whether Beulah International is related to BNL.

Chan Jiaheng, the CEO of Beulah International, is the son of Tan Sri Chan Kong Choy, who serves as the executive chairman of Fajarbaru Builder Group Bhd.

Ownership and Key Stakeholders of STH BNK By Beulah

The major players behind the STH BNK By Beulah project are:

1. Beulah (Developer)

• The main property developer leading the project.
• Adelene Teh (Executive Director) and Jiaheng Chan (Managing Director) are at the helm.

2. KHK Group (Investment Partner)

• A key investment partner in the project.
• Led by Tan Sri Kong Hon Kong, a Malaysian businessman.
• His daughter, Jo Jo Kong, serves as Executive Director of KHK Land and plays an active role in the project.

3. Datuk Teh Kean Ming (Industry Veteran & Mentor)

• A prominent Malaysian property magnate, formerly CEO of IJM Group and now Managing Director of JKG Land.
• Father of Adelene Teh, who played a significant role in shaping her career in real estate.

4. Maybank (Financial Backer)

• Provides financing for the project.
• This is the third project by Beulah that has received funding from Maybank.

5. Four Seasons (Strategic Partner)

• Partnering with the project, which signifies strong confidence in its potential.

6. Centre Pompidou (Paris) (Cultural Partner)

• A world-renowned arts and culture institution, bringing its influence to enhance Melbourne’s cultural landscape within the development.

Ownership Breakdown & Influence

• Beulah and KHK Group are the primary stakeholders, with Beulah leading the development and KHK Group providing key investments.
• Maybank plays a financial role, ensuring funding stability.
• Four Seasons and Centre Pompidou contribute to the project’s branding and international appeal.

This mix of expertise, funding, and partnerships makes STH BNK By Beulah a high-profile, multi-stakeholder development, blending luxury, culture, and sustainability into Australia’s tallest inner-city project.

There are allegations that several money laundering transactions involved Datuk Teh Kean, the former CEO of a leading conglomerate. Is Beulah International involved in money laundering? Is there any connection between Beulah’s losses and this?