St Hilliers and Cbus Property, the wholly owned subsidiary of Cbus, the national superannuation fund for the construction and building industry, have entered into a joint venture to deliver a major residential development in Sydney's east.

St Hilliers Executive Chairman, Tim Casey, said he believes the joint venture to develop the Caritas site at 299 Forbes Street, Darlinghurst is the start of a long term mutually beneficial relationship.

Established in 1984, Cbus is one of Australia's largest super funds with around $13 billion in funds under management, more than 570,000 members and in excess of 63,000 participating employers.

"Both St Hilliers and Cbus Property are keen to invest in projects, which will not only provide strong returns but will create employment opportunities right through the construction industry," Casey said.

"We are definitely in the market for projects similar to Caritas, which is a quality residential development site in one of the Sydney residential market's most highly sought after areas."

Adrian Pozzo, CEO of Cbus Property said: "We are excited to be involved in yet another prestigious residential development in Sydney. Cbus Property sees enormous opportunity in both the Sydney commercial and residential property markets over the next few years. Caritas is the third property Investment for Cbus Property in Sydney this year, complementing our other recent investments in the commercial office tower at 1 Bligh Street and The Residence apartments."

St Hilliers acquired the 4,500 square metre site from St Vincent's Hospital in 2008 with concept plan approval for a medium density residential and commercial development. The site is currently occupied by the Caritas healthcare facility with vacant possession to be provided in September 2010. 

The joint venture with Cbus Property builds upon St Hilliers strategy of providing the investors in its wholesales managed funds and its joint venture partners access to its integrated project delivery expertise.

St Hilliers, over its 20 year history, has engaged in numerous joint ventures with partners including NSW Landcom, the Land Development Agency in the ACT, the development of 800 plus apartments in Carlton, Victoria with Australand currently underway, and a commercial office building in Walsh Bay in joint venture with a Macquarie Bank wholesale fund which was completed in 2008 and pre-sold to
Axa Australia.

A Development Application for 110 apartments comprising a mix of one, two and three bedrooms as well as commercial retail space has been lodged for the Caritas site. The site also incorporates a number of heritage buildings, which will be restored and adapted for re-use.  

Marketing of the apartments will begin mid 2010 with construction of the development scheduled to commence at the end of that year. 

"Our market for this development will be owner/occupiers, who are professionals or empty nesters. We will be catering for their needs by providing spacious, generously sized apartments with high quality finishes," Tim Casey said.

"Darlinghurst has broad appeal for those wishing to capitalise on lifestyle opportunities and is now seen as a viable alternative to Elizabeth Bay. The precinct has many amenities within walking distance including the CBD, entertainment and restaurant venues along nearby Oxford Street as well as major sporting facilities such as the Sydney Cricket Ground and the Sydney Football Stadium."