Frasers Centrepoint, the property arm of Fraser and Neave (F&N), has inked a joint venture (JV) agreement with Japan’s Sekisui House Australia Holdings Pty Ltd to develop the S$2.6 billion (A$2 billion) Central Park project in Sydney, a venture positively viewed by some analysts.

The majority of the 5.8 ha site will be developed by Frasers Property Australia Pty Ltd, the Australian subsidiary of Frasers, with the Japanese developer.

Nomura Singapore’s Lim Jit Soon believes that the JV will “unlock value” for F&N.

“The transaction will crystallise the value of the land for F&N,” said Lim. He said that F&N expects a profit of approximately S$52 million from the development.

Sharing the same outlook, DBS Vickers analyst Andy Sim, noted, “We see this piece of news as mildly positive for F&N given that it helps to lock in some gains and accelerate its asset recycling drive.”

Sumio Wada, Chief Executive of Sekisui House Australia and Vice President of its mother company Sekisui House Ltd, also said, “Central Park already has an international reputation as a development that will bring an outstanding, world-class precinct to inner Sydney.”

Aiming to be Sydney’s most sustainable urban community, Central Park will feature its own tri-generation power station and a water treatment plant. Designed as a multi-use urban village, approximately 1,900 apartments and residences will be constructed, along with 23,000 sq m of retail space and 77,000 sq m of commercial space.

The project will be developed in stages, over a span of eight to 10 years, with the main park slated for completion in December this year. Its One Central Park and Park Lane residential components are due to be completed by mid-2013 and late-2013 respectively. 

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