Abadeen partner with Phoenix to delivery luxury apartment pipeline for Sydney

The Sydney-based developer Abadeen Group has teamed up with the APAC-focused private equity real estate investment group Phoenix Property Investors to create a string of boutique residential apartment projects in Sydney over the next five years.

The $250 million investment will see between 15-20 projects delivered, with over $1 billion in gross revenue forecasted.

The sites will yield between 10 to 50 apartments, located in established and desirable neighbourhoods within 10km of the CBD, and targeting an average of $100m in gross revenue when completed.

Abadeen’s Executive Director, Joseph Tack, said the Residential Development Platform is the culmination of a three-year strategic plan to build a pipeline of prime infill sites to deliver high quality bespoke projects to owner occupier customers.

"The relationship with Phoenix enables us to source high quality opportunities in a competitive environment, with a focus on amalgamations and sourcing off m​arket transactions.

"Our latest acquisition involved the direct approach and amalgamation of 21 strata lots across three buildings, which has taken over seven months to negotiate”.

Trent Winduss, Director and Head of Australian investments in Phoenix’s Sydney office, said the partnership with Abadeen is the realization of a long-considered investment thesis to build a scalable residential development business targeting boutique, quality and desirable apartment living for owner-occupiers in highly sought-after neighbourhoods in Sydney.

"We believe Abadeen is the right partner in helping to realize that thesis given its depth of development experience, vertically integrated project and development management expertise and first-class marketing acumen”.

Since formalising the venture in June, the partnership is off to a rapid start with five active projects and a sixth recently secured located in Crow’s Nest, Naremburn, Cremorne, Mosman and Neutral Bay which have a combined projected gross revenue in excess of $300m.

Development approvals have been obtained by Abadeen for the Crows Nest and Neutral Bay projects, branded ‘KOYO’ and ‘ENSO’ respectively and designed by acclaimed architects Koichi Takada.

KOYO comprises 27 predominantly three-bedroom apartments in a cul de sac setting and is now selling through CBRE Residential Projects.

ENSO offers nine residences on Grosvenor St in the heart of Neutral Bay village, with both projects aimed towards the down sizer market with luxury finishes and extensive local amenities within walking distance.

A development application has been lodged for the 58-unit planned project in Naremburn, designed by Rothelowman, and will include a wider range of apartment sizes including product for first time buyers. A pre-sale campaign is expected to commence early next year.

The joint venture has acquired a further three projects in the Lower North Shore demonstrating confidence in that market for sites which have the required attributes.

Contracts have been exchanged to acquire an asset at Clifford St, Mosman to create 30 apartments and associated retail space on a site acquired from the State Government, and a corner site at 2 Sutherland St Cremorne to develop 14 predominantly three-bedroom residences which offers Bay views to the North and over Cammeray Golf Club to the West. Contracts have been recently exchanged on a sixth asset located in Neutral Bay which is yet to be disclosed.