Doltone House eyes spot in Mirvac’s Harbourside development as Japan’s Mitsubishi circles

An artist’s render of Mirvac’s Harbourside Residence at Darling Harbour, NSW, which is to be backed by MEA.

Hospitality operator Doltone House is in talks to expand into Mirvac’s under-construction Harbourside precinct in Darling Harbour, as the developer moves closer to locking down Japan’s Mitsubishi Estates Asia as a capital partner.

A major function centre could become part of the overall mixed-use project, which also includes a luxury residential tower that has had strong sales, along with up-market retail and new offices.

Doltone House has been in expansion mode and already has a number of venues in the area, including Jones Bay Wharf and Darling Island Wharf, as well as new food destination, Hay St Market at Paddy’s Markets.

But much of the focus is on Mirvac’s plans to win over a Japanese company to back the high-profile property project at the Darling Harbour precinct. It is now courting heavyweight group MEA, which has become a go-to for large developers looking to get mixed-use projects underway.

Mirvac had earlier fielded interest from Daiwa House, which has already established a presence in Australia and is backing a build-to-rent project at Melbourne Quarter that Lendlease is undertaking.

But MEA is likely to emerge as the partner on the huge mixed-use project, giving investors confidence as it pushes ahead with its ambitious development pipeline that also includes Sydney office tower 55 Pitt Street. Mirvac last year won the backing of Japanese heavyweight Mitsui Fudosan to build the $2bn tower at Sydney’s Circular Quay.

Mirvac already has a tie with MEA as a backer of its $1.8bn build-to-rent venture that it unveiled in 2023. That venture has been rolling out new facilities across Australia and established itself as a leader along the east coast.

MEA is already a partner of a number of high-profile development companies, most notably Lendlease. That company last month brought in two Asian heavyweights to support its planned $2.5bn residential project overlooking Sydney’s Hyde Park.

It tapped both long-time partner MEA and a newer backer, Nippon Steel Kowa Real Estate, to support its play for the office block at 175 Liverpool Street, which will make way for the striking luxury apartment project

MEA already backs other Lendlease premium projects dotted around Sydney. The company has also more recently invested in other projects in Balmain in Sydney’s inner west and also in Queensland.

Japanese investing has grown from office buildings into the full gamut of property asset classes. The companies now support local developers in fields ranging from land lease residential estates to industrial parks. They are using their low cost of capital in order to buy into projects at an early stage and reap hefty development returns. They are partly motivated by the relatively high growth in the Australian market compared to their slower domestic market.

Mirvac is locking down its partner while it is also looking to expand in funds management. It has made a play for Lendlease’s $10bn Australian Prime Property Fund empire which manages offices, shopping centres and Industrial real estate.

Superannuation fund Hostplus and other dissatisfied investors are leading the charge against the manager, which is fighting to keep the funds and sports its own significant ties with offshore capital including Korean and Japanese groups.

Jarden’s Tim Leahy said Mirvac’s result this Friday would be closely watched.

“At the previous result, Mirvac spoke about the beginning of a market turnaround, and that they have multiple drivers for earnings growth in fiscal 2026 and beyond. The stock has been actively traded of late. I suspect there will be some trading activity on the day itself and beyond,” he said.