Japanese capital to back redevelopment of Sydney’s Harbourside complex

Mirvac has fresh backers for its redevelopment of Sydney’s Harbourside complex and a new industrial precinct at Badgerys Creek in Sydney’s west.

Mirvac has won new tenants for its 55 Pitt St development

Property heavyweight Mirvac has struck two deals to bring partners into its major projects, with fresh backers for its redevelopment of Sydney’s Harbourside complex and at a new industrial precinct at Badgerys Creek in Sydney’s west.

The company and rival Stockland each gave healthy updates in which they said new homes were selling well, with the market boosted by the expectation of a post-election pick-up and interest rate cuts.

Both companies have set up new capital partnerships in recent years, allowing them to get their largest projects going more quickly and to reap higher capital returns. Mirvac has already got a Japanese partner on its 55 Pitt Street tower in Sydney, where it has secured new tenants.

Industry players said it had locked in another group from Japan for the rising Harbourside tower, where there have been strong apartment pre-sales.

Mirvac would say only that it had a party on due diligence to take a half interest in the complex.

On the industrial front it has secured superannuation group Australian Retirement Trust as the buyer of a slice of a new $700m estate at Sydney’s Badgerys Creek, although it did not identify the partner.

Mirvac said it had signed heads of agreement for the selldown of a 49 per cent interest in stage one of its industrial development at SEED, Badgerys Creek to an “aligned capital partner”.

Mirvac had strong residential sales growth, with quarterly sales of 530 lots, up 76 per cent on the same time last year, and residential pre-sales increasing to $2.1bn.

Mirvac chief executive Campbell Hanan said there was “positive momentum” across the business over the third quarter.

Stockland said it had finalised contractual negotiations to undertake development of the Waterloo Renewal Project in Sydney alongside its consortium partners. Stockland kept its funds from operations in fiscal 2025 per security guidance of between 33c and 34c on a post-tax basis.

On the housing development front, the estates had net sales of 1509 – in line with expectations – and the company had 6232 contracts on hand. It expects fiscal 2025 settlements between 6200 and 6700 lots and development operating profit margin in the low 20 per cent range.

UBS analysts said Stockland had outperformed Mirvac by about 40 per cent in the past three years as its execution has been more consistent and the market has bought into the strategy.

Stockland has also formed capital partnerships and acquired Halcyon and the Lendlease housing business opportunistically.

Originally published as Japanese capital to back redevelopment of Sydney’s Harbourside complex