Springfield City Group, and Chinese companies R&F Properties and Etone partner to deliver major apartment development project with an end value of AUD$6.3 billion
Springfield City Group, the multi-award winning city developer of Greater Springfield, is pleased to announce that it has signed a development agreement with Chinese development and investment groups Guangzhou R&F Properties Co., Limited (R&F Properties) and Etone Australia Holdings (Etone) to deliver a major medium-to-high density apartment project. The significant residential development, to be known as Central Gardens, is located adjacent to the rail station and transit hub in the heart of Greater Springfield and will comprise approximately 10,000 apartments plus ancillary commercial and retail space. The estimated end value is more than $6 billion.
Greater Springfield is located in Queensland, Australia and has a total land area of 2,860 hectares (7,067 acres). Approximate travel times by car are 30 minutes from Brisbane’s CBD, 35 minutes from Brisbane’s domestic and international airports and 50 minutes from the Gold Coast. Greater Springfield is one of Australia’s fastest emerging new cities – a city within the city of Ipswich – with a current population of approximately 34,000 people, which is expected to grow to 115,000 residents by 2030.
Approximately $157 billion has been invested in Greater Springfield so far and the emerging city is experiencing approximately $600 million in construction expenditure per year. Total investment on completion expected to be in excess of $85 billion. This award-winning nation building project is centred on health, education, and information technology, and is driving a steadily increasing population, employment and dwelling demand.
In February 2016, Springfield City Group engaged UBS AG, Australia Branch (UBS) as Sole Financial Adviser to conduct a global search for well-credentialed development and capital partners to deliver the unique Central Gardens development.
Trade & Investment Queensland has also assisted Springfield City Group in showcasing Greater Springfield.
Springfield City Group Chairman, Maha Sinnathamby, said: “We are delighted to partner with R&F Properties and Etone to embark on Greater Springfield’s next major growth phase. A lot of work has been completed to get to this point and we look forward to a long and collaborative relationship with our new partners, who will join many existing stakeholders that are actively investing in the development and commercialization of Greater Springfield. ”
UBS Managing Director and Head of Real Estate Australasia, Tim Church, said: “Our extensive global expression of interest campaign resulted in significant interest from a number of high quality groups looking for large-scale and long-term partnership opportunities, highlighting the truly unique investment and development proposition of the Central Gardens project specifically and Greater Springfield more broadly. The vision for this significant project is very exciting and is the logical next step in the evolution of the city’s residential real estate offering. A key attraction which drove the significant interest in the Central Gardens development is the fact that Greater Springfield is a true Master Planned City which will drive significant demand and amenity to the Central Gardens development.”
The development site is situated on prime land which is ideally located close to significant existing and planned infrastructure and amenities. Central Garden’s vision is planned and designed by internationally renowned consultants Woods Bagot, in association with Urbis.
Mr Sinnathamby added: “Central Gardens accelerates the growth of Greater Springfield, an alternative to the Brisbane CBD, by providing new housing and work choices for our diverse and growing community. Greater Springfield is already one of Australia’s fastest urban growth regions and this significant project will bring many opportunities for our community and commerce base to grow and prosper here. Approximately 2187 direct and indirect jobs to be created during the life of the project.”
“Residents in the new high quality apartments will enjoy Greater Springfield’s 30 per cent guaranteed green space and a level of infrastructure that will ensure that it will be a fantastic place for living, business and recreation”, concluded Mr Sinnathamby.
The transaction is subject to a number of customary regulatory approvals. Construction is expected to begin in early 2018.