This article is from the Australian Property Journal archive
CHINESE developer Country Garden is set to exit the Australian property market after putting a deal in place to sell a stake in a $2 billion Wilton Greens development in Sydney south west.
The developer’s Australian subsidiary Risland Australia agreed to sell its interest in the 330ha Wilton Greens development to Sydney-based residential developer Avantaus.
Avantaus will pay a reported $240 million for the share in the massive development on the edge of Sydney’s burgeoning outer south west.
Wilton Greens was launched in 2019 with joint venture partners Walker Corporation.
The development when completed will comprise of 3600 homes.
Last year it secured 100 land sales worth a reported $30m in total. Just 50 homes are currently under construction..
Country Garden Australia chief executive Guotao Hu said that the “divestment also allows Risland to rebalance its portfolio and continue to seek new opportunities to operate in the important Australian market.”
However, property experts believe Country Garden may exit the Australian market altogether in the foreseeable future.
Country Garden, founded by Yang Guoqiang in the early 1990s, is riddled with debt along with many other Chinese developers. It joins other debt laded Chinese developers who have escaped Australia to focus on their billions in debts back in China.
In October last year it defaulted on a dollar bond for the first time after failing to pay the US$15.4 million interest on a US$500 million note due in 2025.
