This article is from the Australian Property Journal archive
EXCLUSIVE: ACTIVE Japanese real estate developer Hankyu Hanshin Properties has quietly fallen in love with Australia by making a play for a 2000 apartments project in Sydney – its first residential development down under, as it looks for more capital partnership opportunities.
The Osaka-based group will invest in a joint venture with Sekisui House Australia to develop stages 1-7 of the southern block of Melrose Park.
Tomiyuki Matsuda, Senior Managing Director and General Manager of the Overseas Business Division for Hankyu Hanshin Properties, said the Sydney project is the company’s first residential investment in Australia, and the sixth country following Vietnam, Thailand, the Philippines, Indonesia, and Malaysia.
Melrose Park is a large-scale $5 billion project of approximately 30 hectares that has been under development by Sekisui House Australia since 2014.
Initially, the development was a joint venture between Sekisui House Australia and local developer Payce.
Sekisui later acquired Payce’s interest in the project and now wholly owns the project. So far, 1,075 condominiums have been sold, and plans are in place to develop an additional 4,700 condominiums in the future.
“This project in which Hankyu Hanshin Realty is now participating is a condominium sales project for approximately 2,000 of the approximately 4,700 units, covering the first seven stages,” Tomiyuki said.
The investment in Melrose place is part of Hankyu Hanshin Properties continued expansion in Australia.
Tomiyuki said the company will continue to diversify its real estate business in Australia, where stable population growth is expected, and economic growth continues.
From the left: [Sekisui House] Atsushi Seguchi, CEO of Sekisui House Australia’s Australian Development Division, Takehisa Yanagi, Managing Executive Officer and General Manager of the International Development Division. [Hankyu Hanshin Realty] Tomiyuki Matsuda, Senior Managing Director and General Manager of the Overseas Business Division, Hideyuki Hori, General Manager of the Overseas Housing Business Division, Overseas Business Division.
The $3.2 billion portfolio is held by ESR in a joint venture with the Abu Dhabi Investment Authority (ADIA).
The 11 assets are located in Sydney (four properties) – including a site in the Sydney Airport precinct that was part of an $802 million acquisition from Qantas – Melbourne (three assets), Brisbane (three) and Perth (one) and total a combined leasable area of 860,000 sqm.
Two other companies, shipping company Mitsui O.S.K. Lines, Ltd. and property firm Kintetsu Real Estate Co., Ltd., are scheduled to invest in the fund.
