14 May 2015
Colliers International advised a Chinese investor, Forte Group (Forte), part of the Fosun Conglomerate, on its first foray into the Australian property market, acquiring a 75% share in three major developments in Sydney and Brisbane from EG Funds Management (EG). The joint venture, which will have an end value in the vicinity of $650 million, includes projects at Five Dock and Auburn in Sydney, and Fortitude Valley in Brisbane, encompassing over 1,000 apartment.
The move marks Forte’s first step abroad. The Forte Group announced that they would engage in a joint venture with EG Funds Management and its “YPI Fund,” which will continue to maintain a 25% share in the projects and the development manager and project manager across all three sites.
Betty Wong, Head of Investment Services, Shanghai, led the discussion with Forte with assistance from Terence Tang and Brendon Frye of Colliers’ Asia Capital Markets and Investment Services (ACMIS) and Luke Tao of Colliers’ Shanghai Investment Services.
Commenting on the transaction, Terence Tang, Head of ACMIS, said: “Our Shanghai investment team, working together with the Asia outbound investment team, linked up the two companies with mutual interest, leading to the deal. The deal demonstrates the strength of Colliers’ integrated capital markets platform. The regional outbound and local investment services teams have collaborated effectively in helping the Forte Group to complete its first transaction outside its home market.”