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EG Funds Management and Chinese developer Forte enter into a JV to deliver three high-rise residential projects in Sydney and Brisbane

Last Updated: September 11, 2023

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EG Funds Management and Chinese developer Forte
ON ITS WAY: A concept image of the EG Funds Management and Forte development at 312-318 Brunswick St, Fortitide Valley.

ONE of Australia’s leading non-core real estate fund managers EG is set to partner up with Chinese developer Forte on three high-rise residential projects.

Forte, which is part of the Fosun Group, and EG Funds Management have entered into contracts which will see Forte acquire a 75 per cent interest in EG’s developments at Five Dock and Auburn in Sydney and Brisbane’s Fortitude Valley.

EG’s Yield Plus Infrastructure Fund will retain the remaining interest in the projects and work alongside Forte as an equity partner. EG will be the development manager and project manager across all three sites.

The Brisbane property is at 312-318 Brunswick St is in Brunswick Street Mall.

The site is currently a three-level building with office and retail tenants and occupies 2521sq m. The property, which housed Optus as is major tenant, was bought by EG in 2008 for $18.7 million.

EG Funds Management and Chinese developer Forte
A concept image of the EG Funds Management and Forte development at 312-318 Brunswick St, Fortitide Valley.

EG currently has an application submitted to the Brisbane City Council for a mixed-use residential development which will comprise 24,000sq m of gross floor area with 348 apartments and 550sq m of retail space.

EG chief executive Adam Geha said Forte was a highly knowledgeable and capable developer.

“These deals with Forte reinforce EG’s ongoing strategy for the YPI Fund, which aims to unlock potential rezoning opportunities and acquire income producing sites which are well serviced by public infrastructure and can be transformed into new residential communities,” he said.

The total end value of the three projects that Forte have invested in is about $650 million.

Forte is the largest real estate development platform under Fosun Property.

It is ranked in China’s Top 20 real estate developer in 2015 and has a presence in 16

cities around China.

The other joint venture projects are at 1A Queen St, Auburn, in NSW, and 186 Great North Rd, Five Dock.

 

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