Hong Kong’s Euro Properties hones in on Sydney market
Source: News Limited
Hong Kong-based developer Euro Properties is shaping up to be the next offshore player making a splash in Sydney’s property market as it runs the ruler over two of the city’s most sought after assets.
Euro Properties has looked over the Channel 9 studios in Willoughby in conjunction with an offshore partner, and is also among a group of three in contention for the $100m Vibe hotel in Elizabeth Street, Sydney.
Led by former Goldman Sachs banker Que Yau Neo, the company has operated for 20 years across recruitment, asset management and conferences in Asia and the US. Its property development arm has completed more than 25 apartment and luxury housing developments from Asia to the US, with partners including Blackstone and Starwood Capital. And now it has its sights set on Sydney.
The group snapped up two properties in Neutral Bay in Sydney’s northshore in early June, including one site that has the potential for 28 apartments.
It has also completed an apartment tower on Sydney’s Castlereagh Street, which is understood to have been in conjunction with a partner.
Representatives of the group were looking at CBD assets last week, a source confirmed, but the company declined to comment on its activities.
“We’re not in a position to make a comment on the investment,” chief operating officer Netty Fung told The Australian on Wednesday.
Chief executive Mr Neo told an international reporter this month the group currently favoured sites in Australia, particularly in Sydney, because of currency falls. “The Australian currency has dropped almost 30 per cent against the US dollar since the peak,” he said in Singapore’s The Edge.
Its a new move for the company which has focused on the US housing market since the GFC, with a particular emphasis on luxury apartments and condominiums in New York.
“In the early stages of the crisis, we participated mainly through private equity and real estate funds, for instance with Blackstone Group and Starwood Capital, to purchase distressed assets being auctioned by banks,” Mr Neo told the publication.
Euro is recognised as the first Chinese group to develop an apartment tower on Manhattan without the help of a local partner, at its 118 East 59th Street project. The group paid $US49m for the ageing office tower in 2013, and is redeveloping it into 29 luxury apartments with a $US30m penthouse.