Japanese developers partner with Frasers on Central Park

Property developer Frasers has entered an agreement with Japanese construction firm Sekisui House to jointly develop the majority of the $2 billion Central Park project in central Sydney.

While the value of the deal has not been disclosed, a spokesperson confirmed that it is 50/50 joint venture.  “Both parties are equal partners in the joint venture,” she told Property Observer.

Work on the 5.8-hectare, mixed-use site began in late 2008 and completion of the project is expected to take between eight and 10 years.

To date, more than 500 apartments have been sold off-the-plan for the first residential stage, ‘One Central Park’, which is due for completion by mid-2013.

The 116-metre, 33-storey tower will comprise a 632 apartments upon completion and has been designed by French architect Jean Nouvel.

The first batch of 228 apartments, priced between $460,000 and $1 million, was sold off-the-plan within six weeks of being released in August 2010.

A second batch of 100 apartments was released in October 2010, priced between $515,000 and $1.2 million, and a third batch of 150 apartments was released in December 2010 between $610,000 and $1.25 million.

Central Park is 1.5 kilometres from the Sydney Town Hall and is defined by Broadway, Abercrombie Street, O’Connor Street, Wellington Street and Kensington Street in Chippendale.

Upon completion Central Park will comprise about 1,900 apartments, student housing, a hotel, a 16,000-square-metre multi-level retail centre and a 75,000-square-metre commercial office campus.

Due to the demand, construction of Central Park’s second residential stage, ‘Park Lane’, has been brought forward, with construction expected to begin shortly.

Frasers is currently involved in similar joint ventures with Sekisui House in Singapore.

Sekisui House Limited has a market cap of 541 billion yen ($6.76 billion) and recently marked the completion in Japan of two million homes.

Under the terms of the joint venture, which will come into effect after satisfaction of relevant conditions, Frasers will continue as development manager, project manager and sales and marketing manager for the project.

Frasers Property Australia CEO Guy Pahor says the joint venture will allow Frasers to recycle capital into other development opportunities in line with the company’s strategic growth objectives.

Frasers purchased the site in 2007, began demolition and early infrastructure works in 2008 and achieved master plan approval in early 2009.