According to The Australian Financial Review, Japanese-backed developer, Sekisui House has paid $360 million for a 9.4-hectare "super" residential site in the growth precinct of Wentworth Point in Sydney's west to build 2000 apartments, amid fresh warnings from the Reserve Bank about the riskiness of inner city apartment developments.
The developer bought the site, adjacent to its existing joint venture project "Jewel" with Payce Consolidated, from NSW Roads and Maritime Services, through a tender process facilitated by the government's transformation arm, UrbanGrowth NSW.
Tokyo-listed Sekisui House plans to build the apartments in several 25-storey towers in a waterfront community, similar to the transformed suburb of Rhodes nearby, and connected to Wentworth Point by the newly opened Bennelong Bridge.
"This is one of the most significant milestones for our company since we entered the Australian marketplace in 2009 and firmly positions us as one of the foremost developers in the country," Sekisui House Australia chief executive Toru Abe said.
Sekisui House, which is known for its Sydney CBD Central Park mixed use project with Frasers Property, has selected Japanese architects, Kengo Kuma and Associates and a local firm to design the masterplan, and is hoping to start the project in 2018 and complete it by 2020.
In its Financial Stability Review on Friday, the Reserve Bank warned the slowing inner city apartment demand could hurt developer profits and ultimately bank development loans.
Separately, another major developer, Meriton announced it is selling its strata-title management business in response to reforms to the strata-title laws in NSW, which come into effect on December 1.
"One of those reforms effectively shuts Meriton, and other developers, out of having any role in the strata-management of their properties until the buildings are 10 years old," chairman Harry Triguboff said in a release.
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