KIND, Hyundai Engineering and Construction, and Korea Investment Real Asset Management Team Up for High-Rise Apartment Development in Sydney

[Financial News] Korea Overseas Infrastructure & Urban Development Corporation (KIND) is partnering with Hyundai Engineering and Construction and Korea Investment Real Asset Management to develop high-rise rental housing in Sydney, Australia, with a total project cost of approximately 350 billion won. It is the first urban development investment project by Team Korea, a consortium of Korean public, construction and financial institutions.
KIND said on the 22nd that the three institutions had signed an investment agreement for the development of a high-rise apartment complex in Chatswood, Sydney. It is the first investment outcome of a memorandum of understanding signed in February to jointly identify overseas real estate and infrastructure projects.
The project will involve constructing and leasing a 45-story apartment building with 260 units in Chatswood, northern Sydney, under a build-to-rent (BTR) model. BTR is a business model in which housing is operated as rental property rather than sold after completion.
The site is adjacent to major commercial areas in northern Sydney and about 50 meters from Chatswood Station, a major transit hub. KIND expects demand for rental housing in Australia to grow amid continued population inflows and a housing supply shortage. It also projected that Sydney will attract more overseas migrants than any other region in Australia over the next 10 years.
The three institutions jointly reviewed the investment, design and financing structure from the early stages of the project. As a public developer and policy financing support institution, KIND assisted with financial structuring and project negotiations.
Hyundai Engineering and Construction will handle the equity investment, design review and construction management (CM) services. Korea Investment Real Asset Management will be responsible for equity investment and asset management.
Australian construction company Hickory will carry out the local construction, while local specialist developer Novus will manage the rental operations. Demolition of the existing structures is scheduled to begin this November, with main construction set to start in March next year. The target move-in date is October 2029.
This project is the first urban development initiative among the joint investments and partnerships that KIND, Hyundai Engineering and Construction, and Korea Investment Real Asset Management have pursued in the United States, Australia, New Zealand and Bulgaria.
A KIND official said, "Going forward, KIND will continue to play a catalytic role, leveraging policy financing support and its global partnership network to help Korean companies secure unrivaled competitiveness and establish themselves in global markets."
[email protected] Reporter Choi Ga-young Reporter