The Japanese apartment builder which owned a string of Queensland properties in its Australian heydays from the 1980s to the mid-2000s, has provided 50 per cent of the capital in Devine's $82 million Mode Apartments in Newstead, Brisbane, the first seed asset in the joint venture.
"Daikyo is a leader in apartment development and management in Japan with a long and proud history, and we are excited to couple this with the experience of Devine, such that we may each share some of our knowledge to the benefit of both companies," said Devine's chief executive, David Keir.
"We are already jointly investigating a second project development opportunity in the Brisbane market."
Construction of inner Brisbane Mode Apartments began in April 2015 and will be completed in August 2016. Of the 157 units, 115 have been sold.
Devine, in which Leighton holds a 50.6 per cent stake, would continue to manage and oversee the Mode Apartments project and construction in the joint venture.
The joint venture marks the first project in Daikyo's foray back into Australia. The Japanese company left Australia after it ran into financial troubles in the mid-2000s and sold its portfolio in Queensland, including the Gold Coast International Hotel and golf courses.
In Japan, Daikyo is one of the largest builders of apartments and has supplied about 450,000 units across 8200 complexes.
Daikyo Australia's managing director, Hiroshi Mori, said Daikyo was eager to bring its expertise to the partnership with Devine. Daikyo was known to have been introduced to Devine over two years ago when the Japanese developer was investigating the Brisbane market as part of its comeback plans.