Herbert Smith Freehills Kramer advises Japanese real estate investors on strategic capital partnership with Investa for A$230 million Sydney CBD development

Herbert Smith Freehills Kramer (HSF Kramer) has advised Japanese real estate investors JR West Real Estate Development Co⁠.⁠, Ltd. and Sotetsu Real Estate Co⁠.⁠, Ltd⁠ on their strategic capital partnership with real estate investment manager Investa to deliver a A$230 million Studio Living project in Sydney, Australia.

The project, to be located in the Sydney CBD, will comprise approximately 251 fully-furnished, self-contained studio apartments along with a range of communal space including co-working spaces, indoor entertainment areas, communal dining zones and outdoor terraces.

Subject to planning consent, construction is expected to begin in 2027, with the development to be operational in mid-2029.

Working alongside the team at Japanese law firm Mori Hamada, the HSF Kramer core team was led by Australia-Japan Corporate partner Damien Roberts together with real estate specialists David Stitt and Michael Back.

Damien said, “It was a pleasure to work with the teams at Mori Hamada, JR West, and Sotetsu on this development, which adds another exciting chapter to the growing story of Japanese companies investing into the important Australia real estate sector, and we look forward to seeing the project come to life.”

This is the latest investment by Japanese companies into Australia. HSF Kramer’s Japan-Australia Investment Report 2024, released earlier this year, found that total Japanese direct investment into Australia increased to a record A$141.1 billion in 2024.

These investments spanned many sectors including real estate, LNG, renewable energy and decarbonisation, technology, financial services, consumer goods, infrastructure, housing and services. The trends observed in 2024 demonstrate that Japanese capital and know-how remain crucial drivers of Australian economic growth and prosperity.

You can read the report here.