This article is from the Australian Property Journal archive
GUANDONG-based high-end residential property developer Country Garden has entered the Australian market with the acquisition of a Sydney development site for $73 million.
The transaction was transacted by Jones Lang LaSalle’s Ben Hunter and Aaron Hatch on behalf of the Goodman Group.
The 17,580 sqm site holds a prominent position at 27-37 Delhi Rd North Ryde, only 15km north-west of Sydney. The rezoning of the site for mixed-use development forms one of the biggest urban renewal projects in the state’s history as a result of the NSW Government’s initiative for new homes and jobs alongside the provision of at least $17 million in infrastructure.
This site is adjacent to the North Ryde Railway Station and nearby major arterial roads – M2 Motorway, Epping Road and Delhi Road. The site has potential for the development of approximately 815 apartments with associated retail, depending on the development approval outcome.
JLL’s international investments director Ben Hunter said this acquisition by Country Garden follows significant activity by other major Asian property development companies in the Australian market.
Country Garden is following in the footsteps of Shanghai-based and China’s state owned enterprise, Greenland Group, which last year bought 115 Bathurst St for $100 million. Greenland has plans for a $600 million, 240-metre building, which will become Sydney’s tallest apartment tower.
“We have transacted a number of major site sales in both the Sydney and Melbourne markets over the past 12 months as these groups diversify away from their home markets. We expect this trend to continue for the foreseeable future.
“We are seeing very strong offshore interest in particularly the Sydney and Melbourne residential markets and strong buyer interest in off the plan apartment sales,” Hunter said.
The most recent information from the FIRB Annual Report for the financial year 2011-2012 showed that $5.5 billion worth of offshore investment proposals for residential development was approved and this was largely in NSW and Victoria (38% in NSW and 36% in Victoria).
JLL research shows that Chinese outbound investment into commercial real estate increased globally by 124% to $US7.6 billion in 2013. This compares to $US3.3 billion in 2012 and $US2.9 billion in 2011. The Research shows Chinese real estate investors have been most active in Australia, Singapore, the US and the UK.
Chinese investment in Australian property markets increased by 222% from 2012-2013, reaching $590.1 million last year.
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