International investors pumping money into upscale boomer apartments
LOS ANGELES: International investors are still pumping money into the upscale beachfront boomer housing market around the world.
It’s one of several major Japanese corporations that have launched a fresh wave of funds into Australia’s property sector, amounting to $3 billion-worth of real estate investment in each of the past two years.
This time, Mitsubishi Estate Asia is partnering with Queensland-based construction company McNab Group and Ray White Capital for a project at Budds Beach in Surfers Paradise.
Already under construction and expected to be completed by 2028, the Elements Budds Beach development involves a 27-storey building with 87 apartments. Its amenities include a rooftop pool, private dining area, and a wellness retreat with a gym, yoga area, sauna and hot plunge pool.
Only 26 apartments are still available, with more than $100 million already spent in secured sales for the flagship project of the RWC McNab Residential Living Development Fund Series 1.
“Our well-established partnership with McNab across debt and equity dates back to 2005, and over that time we’ve seen firsthand their ability to consistently deliver high-quality outcomes across a range of market conditions,” said Dan White, executive chairman at Ray White Capital and managing director of Ray White Group.
“As McNab continues to scale its vertically integrated development and construction model, we’re actively looking to support its expansion journey through projects like this one.”
Michael McNab, founder and executive chairman at McNab Group, said Mitsubishi was a globally respected name with a long history of delivering high-quality outcomes.
“Their decision to partner with us is a strong endorsement of our vertically integrated delivery model, one that’s built around providing certainty in a market where that’s never been more important,” McNab said.
It is the first residential development in Budds Beach in more than a decade, in a neighbourhood where very few properties had changed hands in the past five years, he said.
“Today’s buyers want absolute confidence that the project will be delivered, built to a high standard, and backed by a team that’s here for the long haul,” McNab said.
“But confidence in delivery is just the starting point. Wellness facilities and beautifully designed spaces to relax, work, and entertain are no longer considered extras. They’re the baseline.”
Yosuke Matsunaga, executive director and head of Australia at Mitsubishi Estate Asia, described the Gold Coast as one of Australia’s most promising residential markets.
“Australia continues to be a key focus in our international strategy, and the Gold Coast represents a dynamic next step in our regional expansion,” Matsunaga said.
“We’re committed to investing in high-quality residential projects in locations underpinned by compelling long-term fundamentals, reflecting both local character and global standards.”
The Gold Coast project adds to Mitsubishi Estate Asia’s growing pipeline of Australian projects, which will be worth more than $20 billion when completed.
Among them, Lendlease and Mitsubishi Estate Asia acquired a 1746-square-metre site in Sydney’s Edgecliff in July last year, with hopes to develop a $500 million mixed-use site. The firms paid $132.5 million for the property at 1 Darling Point Road.
The two companies are also jointly developing One Circular Quay project in Sydney, which will deliver Australia’s first Waldorf Astoria and a separate high-end apartment tower.
As well, the Japanese giant is the third investor in Mirvac’s $1.8 billion build-to-rent fund, along with the federal government’s Clean Energy Finance Corporation.