DEVINE JOINS FORCES WITH DAIKYO
Written on the 14 May 2015
DEVINE Limited (ASX:DVN) has bolstered its clout in the market by partnering with Japanese real estate company Daikyo Incorporated.
The Brisbane developer says the alliance will combine the experience of both companies to explore apartment and mixed-use project opportunities in Australia.
The first development to be jointly launched is Devine's $82 million Mode Apartments in Newstead, which commenced construction last month.
Devine managing director and CEO David Keir says the company is pleased to see Daikyo re-enter the Australian residential property market.
"Daikyo is a leader in apartment development and management in Japan with a long and proud history, and we are excited to couple this with the experience of Devine such that we may each share some of our knowledge to the benefit of both companies," Keir says.
"This is the beginning of a very strong development relationship that will provide for further development opportunities in the future.
"We are already jointly investigating a second project development opportunity in the Brisbane market."
Devine will provide day-to-day operational management of Mode Apartments and construct the building as part of the joint venture.
Devine sold the management rights of the project to Spring FG for $1.88 million last week.
Daikyo Australia managing director Hiroshi Mori says the partnership will allow the company to build on its investment in Australia.
"We see excellent growth potential in the Queensland market, and are looking forward to developing our relationship with Devine via more apartment opportunities in the future," Mori says.
Daikyo is one of Japan's largest builders of apartments and has supplied more than 400,000 units over the past 50 years.
Construction of Mode Apartments is expected to be completed in August 2016, with 115 of its 157 apartments already sold.