Abadeen executive chairman Justin Brown is bullish about the prospects for its latest project in NSW backed by Mitsubishi Estate Asia. Picture: Jane Dempster
Giant Japanese real estate developer Mitsubishi Estate Asia will back a major housing estate in NSW’s Illawarra region being undertaken by the private Abadeen operation, as the state’s housing industry digests the collapse of developer Bathla.
While the Bhart Bhushan-led empire is being broken up as lenders step into key sites and start developing them directly – and hopes remain of a rescue plan for some sites – the move by the Japanese group shows that premium operators are winning support.
The Japanese group already has ties with Abadeen and a host of top developers including Lendlease, where it has backed luxury skyscrapers in Sydney. It is also developing Sydney’s $2.3bn Harbourside precinct with Mirvac in a 50:50 joint venture.
In the latest deal with Abadeen, the pair will develop RIVA Calderwood, a new masterplanned estate with more than 230 new homes in one of the Illawarra’s fastest-growing regions.
RIVA Calderwood builds on existing ties between Abadeen and MEA at the Putney Wharf Harbourfront Precinct in Sydney, and is the pair’s next move in expanding into Australia’s housing sector.
The partnership shows that large-scale international players have confidence in Australia’s long-term housing fundamentals despite the slowing sales reported by major developers including Stockland and Mirvac.
Mitsubishi Estate Asia is backing a housing estate development by Abadeen in NSW’s Illawarra region.
The interest is heaviest in backing top operators who are expanding in growth corridors that address the more affordable end of the living sector.
The estate in Shellharbour is part of the broader Calderwood Urban Development Plan. RIVA Calderwood is designed around the Macquarie Rivulet with a focus on lifestyle.
House and land packages are targeted at a mix of first-home buyers, growing families, downsizers and lifestyle purchasers, with the net cast wide after the Albanese government’s shock property tax changes.
Homesites range from 300sq m to more than 2000sq m, so purchasers have the flexibility to design homes.
Abadeen executive chairman Justin Brown said the partnership was a milestone for both organisations to expand into the more affordable end of the housing market and demonstrated the growing appeal of Australia’s living sector to global investors.
“We’re incredibly proud to be partnering with Mitsubishi Estate Asia to deliver RIVA Calderwood,” he said. “MEA has an outstanding reputation internationally and continues to demonstrate its high conviction in Australia’s residential market through its investment in high-quality communities.”
Mr Brown said the project reflected Abadeen’s continued expansion into masterplanned communities across Australia, where there is pressing need for more stock to address the housing crisis.
MEA head of Australia, Yosuke Matsunaga, said Australia continued to present compelling long-term opportunities for residential investment.
“Abadeen’s track record of delivering high-quality residential communities and our shared long-term investment philosophy made them a natural partner for this project,” he said. “We look forward to a strong and enduring partnership with Abadeen and exploring further opportunities to work together in the future.”
Japanese companies have made large forays into home building and development with the likes of Sekisui House and Asahi Kasei Corporation active.
“Australia continues to benefit from strong population growth and sustained demand for quality housing, and MEA looks forward to continuing to actively invest and grow its business in Australia,” Mr Matsunaga said.
The first public release at RIVA Calderwood is planned for September with the developer optimistic about the site that fits into the affordable end of Abadeen’s pipeline. The company also develops premium boutique apartments and mixed-use projects.
It sports an active project pipeline valued at more than $3.5bn and a strong national presence. Abadeen is working on 20 projects across NSW, Victoria, Queensland and WA.