Japanese property giant Mitsubishi Estate has entered a 50-50 joint venture with Australian developer Mirvac for a mixed-use development in Sydney worth approximately ¥190 billion ($1.29 billion), Nikkei reported.
The partnership will redevelop a former shopping center site, transforming it into offices, residences and retail space with plans to sell the completed assets. Construction has already commenced and is scheduled for completion in 2027, according to the report.
The venture represents another step in Mitsubishi Estate’s Australian expansion strategy, though the developer faces intensifying competition from other Japanese firms. Rival Mitsui Fudosan recently secured a $1.3 billion stake in a Sydney office project, also with Mirvac, while Sumitomo Corporation entered its first Australian deal through a residential joint venture.
Mitsubishi Estate’s Australian activities have accelerated significantly since 2023, spanning industrial logistics with ESR Australia, luxury residential towers with Lendlease, and build-to-rent developments. The company now operates across every major Australian real estate sector.
However, questions remain about execution timelines and market absorption capacity as multiple Japanese developers simultaneously pursue Sydney’s limited prime development sites. The asset sale strategy also suggests the company prioritizes quick returns over long-term income generation in the volatile Australian commercial property market.
Cost details for the latest venture were not disclosed.
