Chinese group VIG launches Sydney CBD apartments
Chinese-backed Visionary Investment Group will launch 131 luxury apartments on Castlereagh Street in the Sydney CBD this month, marking its first play since acquiring at least eight CBD blocks bounded by Castlereagh, Pitt, Bathurst and Liverpool streets in late 2014.
Defying the gloom that has enveloped the sector and backed by capital partner United Real Estate from China, VIG is launching the Silkari on Castlereagh residences as part of its mixed-use project located at the corner of Bathurst and Castlereagh streets, along with its newly created hotel brand Silkari.
VIG bought the corner block earlier this year with United, a vehicle created by 10 developers based in Shanghai to focus on developments in overseas markets.
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Founder and chief executive officer Michael Guo says that United Real Estate is the majority holder and VIG acts as the development manager with a minority stake. He declined to comment on the value of the acquisition or the projected value of the completed project.
“We are an investment platform in property. We have different partners on different projects and United is one of our partners,” Guo tells The Australian in his first interview with Australian media.
We view luxury differently. We need to create a difference (in the market) that is of value so people really appreciate and enjoy
“This is the first collaboration between our two companies. We utilise our local capability and they support us using the capital.”
United was not available for comment. According to its announcement in Mandarin, United controls 90% of the project while VIG owns 10%. Total investment in the 36-storey building will be worth about two billion yuan ($399.3 million).
The 131 apartments would deliver views over Hyde Park and create “a CBD residence of ultimate luxury” similar to the world’s finest addresses at London’s Hyde Park and New York’s Central Park, VIG says.
“We view luxury differently. We need to create a difference (in the market) that is of value so people really appreciate and enjoy,” Guo says. “It should be (that) they won’t spend much time travelling, they’d rather spend time enjoying their lifestyle with their family and friends.”
The corner block is occupied by a couple of old commercial buildings and the heritage Porter House on 203 Castlereagh St. Its historic sandstone arches will extend above into a modern structure designed by Sydney architect Angelo Candalepas.
VIG has obtained approval to use the site as residential and hotel suites, but has yet to gain approval for the planned configuration of 131 residences and 102 hotel suites.
VIG’s portfolio includes the 233 Castlereagh St office tower from GDI Property for $156 million and the 338 Pitt St building from AMP Wholesale Office Fund for $102 million, which the company plans to convert into a 235m tower with up to 1000 apartments.
This is the first collaboration between our two companies. We utilise our local capability and they support us using the capital
Sydney’s CBD is still attracting Chinese developers, with Poly Group in due diligence on two buildings on Sydney’s George St via JLL. That deal could see the buildings change hands for over $160 million and also support a near $500 million unit tower.
Asian investors are also keen on Melbourne. A Malaysian has group bought a site in South Yarra for apartments and a Singaporean company bought a site in Yarraville in city’s inner-west.
“Some Asian investors into Australia are taking a long-term view — acquiring assets now that may not be developed immediately — they are willing to wait for the next cycle,” says Michael Zhang, head of JLL’s China desk.
JLL’s Ben Hunter and James Aroney brokered the VIG deal.
This article originally appeared on www.theaustralian.com.au/property.
