EG Funds Management has inked a $300 million deal with Japan's largest home builder, Daiwa House, to redevelop the former Allied Mills site at Summer Hill into 300 residential dwellings and accompanying retail and commercial space.
Under the deal EG sold a 75 per cent stake in the 25,000-square-metre property, which was bought by its Yield Plus Infrastructure Fund in 2007 for $22.5 million.
The fund lodged initial plans in 2011 to redevelop the original silos into apartments, and the mill building into retail and office space.
Its end value is $300 million and the developers include the Daiwa Australian subsidiaries, Sumitomo Forestry and Cosmos Initia Co.
It's the latest redundant inner-city site to be prepared for redevelopment as the listed and wholesale real estate investment trust battles for a foothold into the booming housing sector.
Stockland, Mirvac and Lend Lease are all undertaking new developments and are now spending heavily on advertising campaigns to win over buyers.
Lend Lease is currently promoting its Barangaroo South development in preparation of the launch of the next stage of the apartments in the site near the northern headland.
