Chinese developers partner to build 1,600 apartments in Sydney's Erskineville

China's state-backed property firm Greenland Group has entered into a joint venture with another Chinese developer Golden Horse for its proposed $1.6 billion residential project in Erskineville's Ashmore precinct in inner Sydney, according to a media report. 

Greenland will take a 60 per cent stake in the project, while Golden Horse, the original purchaser of the $380 million, seven-hectare site in Ashmore, will retain 40 per cent, the Australian Financial Review reported citing industry sources. 

Golden Horse snapped up the site from Goodman Group in 2014, beating other bidders and raising eyebrows for the premium paid on it. It was the largest Chinese real estate acquisition at the time. 

Golden Horse and Greenland will now settle the purchase together at the end of June, after which construction for 1,600 apartments on the site will commence, the report said. 
Greenland, Golden Horse and Goodman all declined to comment, said the AFR report.

There was market talk late last year that Golden Horse was searching for a joint venture partner to share the risks of the project and provide much-needed building and development expertise to its construction. 

While Golden Horse is a well-known and established developer in China, it was new to Australia, and Greenland already had a foothold in the Australian property scene. 

Greenland is building Greenland Centre – made up of the five-star Primus Hotel and Sydney's tallest residential tower at 77 levels – as well as apartments in North Sydney, Leichhardt, Macquarie Park and Potts Point. All of which are underway. 

The group recently ended its Greenland Centre apartment building contract with Brookfield Multiplex due to commercial differences but said it would continue to deliver all apartments on time. Primus Hotel has already completed, just before Christmas last year. 

Golden Horse and Greenland will now develop Ashmore precinct together with Greenland in the driver's seat. 

Golden Horse submitted a stage 1 development application last year but it has not been approved. 

Plans indicate there will be several buildings up to eight storeys on the site bordered by Mitchell Road and Ashmore Street. A new supermarket, gym and possible childcare centres are also expected to be part of the project.