Frasers Property Australia and Mitsui Fudosan establish new joint venture at Midtown
- JV to deliver further three developments in Sydney’s Midtown MacPark
- Already in partnership to deliver MAC Residences, Midtown MacPark’s first development
- Deepened relationship aligns with Frasers Property’s strategy to grow through capital partnerships
- Expanded partnership continues Mitsui Fudosan’s multilateral expansion plan
Frasers Property Australia has strengthened its capital partnership with international diversified group Mitsui Fudosan to deliver three additional apartment developments, with a combined estimated end value of A$797 million, at the A$2.2 billion Midtown MacPark masterplanned community in Sydney.
Frasers Property and Mitsui Fudosan are currently delivering the community’s first building, MAC Residences, in a joint venture established in early 2022. Now, the expanded 50-50 partnership encompasses four buildings, including the landmark Treehouse development. In all, the joint venture is delivering a total of 1,145 apartments and four terraces across the four buildings.
Mark Gleeson, Executive General Manager Investments, says the deepening of the partnership with Mitsui Fudosan aligns with Frasers Property’s strategy to leverage capital partnerships to achieve its growth objectives.
“Working together to deliver MAC Residences at Midtown MacPark has demonstrated the strong alignment in values and priorities between Frasers Property and Mitsui Fudosan. This includes our shared commitment to create high-quality, sustainable assets as part of a wonderful community for our customers,” Mr Gleeson says.
“Our growth strategy is to draw on our core capabilities and leverage the experience of our partners to create premium assets, and to recycle capital to pursue new opportunities aligned with our specialist expertise, particularly in large-scale, mixed-use community development and placemaking,” he adds.
The partnership with Frasers Property in MAC Residences was Mitsui Fudosan’s first foray into the Australian market. This expanded joint venture at Midtown MacPark is their second.
Kenji Oka, Managing Director of Mitsui Fudosan Australia, says “Our existing partnership with Frasers Property Australia at Midtown MacPark is built on the strong relationship established between Mitsui Fudosan and Frasers Property on an international basis. It makes sense to take our growth in the Australian market to the next level by contributing our expertise to a high-quality community development with a partner we know.”
Designed by Bates Smart, MAC Residences is the first building at Midtown MacPark and of its 269 apartments, only seven remain unsold. The development has proven popular with first home buyers, young families, singles and couples, downsizers, investors, and more. Completion is scheduled in 2023.
Treehouse will encompass 162 apartments and several unique green breakout spaces which give the building its name, as well as approximately 1,000sqm of ground floor retail space. Construction is expected to commence in late 2023 and approximately 43% of the apartments have been sold since launch.
The other two developments in the expanded joint venture are as yet unnamed. One will comprise 268 market apartments, 216 community housing dwellings and four terrace homes, with a targeted sales launch in March 2024. The final building in the joint venture will feature 234 market apartments and is anticipated to be launched in the last quarter of 2024.
All four developments in the joint venture will feature rooftop solar installation and smart meters, and Real Utilities, the wholly owned licensed energy retailing business of Frasers Property Australia, will provide 100% Climate Active-certified carbon neutral energy to the buildings.
Similar carbon neutral innovations are planned for future developments in the community. Frasers Property is targeting a 6 Star Green Star Communities rating for Midtown MacPark and the vision is for the community to be carbon neutral in operation.
To be developed in stages over the next 10 to 12 years, Frasers Property is working with the NSW Government to deliver the $2.2 billion Midtown MacPark masterplanned mixed-tenure community, which will integrate approximately 3,300 apartments with a range of community facilities.
An all-electric mixed-tenure community designed for 100% walkability, Midtown MacPark is a vibrant and inclusive community bringing more open space, new amenity and infrastructure including a central Village Green, pocket parks and playgrounds, cycling and walking trails, a commercial pay-as-you go pool and gym, community centre, as well as shops, cafes and beauty offerings, and so much more. The Village Green, pool, gym and community centre will be delivered in line with the Treehouse development.
The expanded joint venture between Frasers Property and Mitsui Fudosan encompasses the delivery of the next 216 community housing dwellings of the total 954 community housing dwellings proposed at Midtown MacPark. The first 259 community housing dwellings at Midtown are on track for completion next year.
Midtown MacPark is located 13km north-west of Sydney CBD and is one of the best-connected communities in Sydney, surrounded by great schools, workplaces, shopping centres and a world-class university, and with easy access to arterial roads, extensive public transport options including rail and bus connections, all just 500 metres to the Metro station.