Singapore's Chip Eng Seng has bought a site on Pirie Street in the Adelaide CBD for $14.5 million, which it plans to develop into a hotel.

The acquisition of 51 Pirie Street was from an ownership entity in which Chip Eng Seng chief executive Raymond Chia Lee Meng has a 40 per cent cent stake.

The Adelaide property is one of two Australian projects controlled by Mr Chia's own development business. Chip Eng Seng signalled its interest in the two assets with Mr Chia's appointment two years ago.

The Pirie Street property will become a hotel development.

The Pirie Street property is a freehold site and has a land size of 1,283 square metres.

It is currently occupied by a vacant office building.