Japanese developer stumps up $360m for Sydney Harbour site

The Sekisui House site at Wentworth Point on Sydney Harbour.

Japanese property developer Sekisui House has brushed aside fears of crumbling inner-city apartment markets and splashed out a near-record $360 million for a site at Wentworth Point in Sydney that can accommodate 2000 units.

The purchase lifts the group’s pipeline of work to about $10 billion worth of residential projects across Sydney and Queensland and it is not worried about the potential for a slowing sales. It says it has had no problems with settlements at its projects.

“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’s local chief executive Toru Abe says.

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The Japanese company, which has partnerships with local group Payce Consolidated and Singapore-backed Frasers Property, will develop the project itself over coming years.

The company does not accept the market is falling. “Even if the market is flat we believe we can add some value in this project,” Sekisui’s local general manager Hide Seguchi says.

He adds the group is not seeing any problems on unit settlements due the high quality of its products, with only lower-tier developments being exposed.

There is still fierce competition for unit sites and the purchase comes in the same week The Australian revealed that local apartment tsar, Harry Triguboff of Meriton Apartments, is paying more than $200 million for a Macquarie Park property in Sydney’s northern suburbs.

Even if the market is flat we believe we can add some value in this project

Sekisui also beat the Chinese companies that have made the running for a series of major apartment sites.

China Poly Group Corporation teamed up with private developer Billbergia to make a play for the site and Chinese groups Greenland and Macrolink were also named as bidders.

Sales agent James Bellew of Colliers International says the site was sought by a number of Australia’s top developers. It was sold by NSW’s UrbanGrowth, acting for the Roads and Maritime Services department.

The purchase gives Sekisui one of the largest scale sites on Sydney Harbour, with true north views across Parramatta River.

This article originally appeared on www.theaustralian.com.au/property.