EQ beats titans to inner-city project
Little-known apartment developer EQ Projects is said to have knocked out rival heavyweights Walker, Frasers and Stockland to snare the rights to build a $600 million residential development in the booming inner-city suburb of Zetland.
Despite Sydney’s apartment glut, more than 150 inquiries for the 106-116 Epsom Road site were received from local and international groups.
But the submission by EQ Projects — headed by Louis Yazbek and Colin Sim and backed by finance from PAG, a Hong Kongbased alternative investment house with $20 billion in funds under management — won out, sources said.
Under the agreement EQ Projects will partner with the site’s long-term owner and developer, Lincon, to apartments.
Market commentators have long discussed the crunch on investor lending, which coupled with rising levels of new apartment stock is affecting all major capital city housing markets leading to price falls across the unit sector.
Several developer groups that bought sites at the peak of the cycle are finding it difficult to secure development finance, particularly in Sydney.
Matrix Property Group founder Andrew Antonas, who acted for Lincon said Chinese developers were still looking at Sydney development sites and were making up about 10 per cent of the inquiries . He noted that Indian property developers were also showing interest.
“Anything within 5km-7 km of the city is hot and recessionproof , but finance is the key,” he said.
“The challenge is some developers have bought at the peak of the cycle and are struggling to secure finance.”
Lincon bought the 2.1ha site in 1994 and has since operated a family business on the property, on 8000sq m with developments including warehouses and offices.
Following a design competition , four separate architectural practices have designed the apartment towers, including MHN Design in collaboration with Neeson Murcutt Architects.
Mr Antonas is believed to have received 12 formal submissions for a development partner to work with Lincon since he went to the market last October. The development has approvals for 546 units spread across four separate buildings.
While Mr Antonas would not comment on the identity of the interested parties, it is understood Roxy Pacific was also keen on the Epsom Road site.
Meriton Apartments recently bought the adjoining Epsom Road site in a deal worth about $80m for another apartment development .
Lincon was advised by Census Advisory.
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