australa sia
Crown International
Feature
Jewel Crown in the
2
CROWN INTERNATIONAL
Australasia Outlook profiles residential developer Crown International and talks with joint-CEO Iwan Sunito. By Ian Armitage
I
Focus Construction
wan Sunito is joint-CEO of rapidly growing Sydney-based residential developer Crown International. He helped start the company with Paul Sathio in 1996 and over the last 10 years it has grown to become one of Australia’s leading property development groups with an A$2.5 billion portfolio of projects completed, under development or in the pipeline. “We are privately owned and actively engaged in property development, construction, property investment and asset management,” Sunito says, speaking to Australasia Outlook from Jakarta. Few companies in the competitive Australian property development market have achieved the phenomenal growth that Crown has. “We’ve really gone from strength to strength,” says Sunito. “We’ve not grown too quickly or taken too many risks and in 16 extraordinary years we have grown from nothing into what we are today.” Crown has a string of world-class projects underway in several Sydney suburbs, including Top Ryde shopping centre in Sydney’s northwest. It paid A$4.3 million for the development rights before a syndicate of banks took control of John Beville’s Bevillesta Pty Ltd. Crown also bought the right to build apartments in the air space above the shopping centre for A$37 million. “It is a huge development and we will build 650 apartments. The homes are positioned over 80,000sqm of retail space and more than 290 specialty stores. The added convenience of living so close to shopping and transport facilities is a key selling
3
CROWN INTERNATIONAL
feature for many buyers at Top Ryde City Living,” Sunito says. The apartments are available for pre-sale, with prices starting from A$500,000 for a one bedroom apartment including one car space, A$650,000 for a two-bedroom apartment and A$875,000 for a three bedroom apartment with two car spaces and spectacular city skyline views. “It is one of the safest suburbs of Sydney,” says Sunito, who added that Crown has recently made three key purchases in central Sydney. “You are talking about Clarence Street in Sydney’s CBD? That takes us to another
level. At 161 Clarence Street, we’ll develop a A$200 million, 27-storey residential tower. It will offer five-star resort style living with a mix of one, two and three bedroom and penthouse apartments.” Crown has also begun the construction of V, the A$300 million self-labelled ‘crown jewel’ of Sydney’s second CBD Parramatta’s urban renewal. The building is a state-of-theart “vertical village” and features a resort-style hotel, 420 luxury apartments, premium office space and quality retail. “We are enormously proud of that,” says Sunito.
Height Safety Engineers Height Safety Engineers (HSE) is proud to have been associated with Crown Group in its recent development at Top Ryde. HSE’s involvement was to provide an innovative solution to fall protection issues at roof levels and in the plant room areas. HSE’s focus remains on the fall protection and confined space markets. Together as a team we will ensure our clients will benefit from our investment in this industry. HSE provides value differentiation in its products, services and expertise. Our investment is reflected by new and innovative solutions which lead to the delivery of enhanced worker protection from work-at-heights and confined space hazards. To contact one of our fall protection experts call 1300 884 978, or email us at enquiries@ heightsafety.net today.
“At 161 Clarence Street, we’ll develop a A$200 million, 27-storey residential tower. It will offer fivestar resort style living with a mix of one, two and three bedroom and penthouse apartments”
4
"Safety at the Highest Level"
Design, Installation & Upgrades of Height Safety Access Systems, including Advanced Rail Systems and Specialised Engineering Systems.
Contact our office today for economical and innovative solutions
ASQA Accredited Training Courses that we offer include: - Working at Heights (MNMG237A) - White Card - Senior First Aid (HLTFA301B) - Vertical Rescue - Confined Space - Industrial Rope Access Call us today to book an interactive training session which could CHANGE YOUR LIFE
Visit us at our State of the Art Training Facility for hands on, practical experience • Annual Inspections & Recertification for Access Systems and Equipment • OHS Compliance Audits – General & Height Safety • Supply of Safety & Rescue Equipment to suit all your needs
Call Now for Professional and Expert Consultants
Contact us Today Tel: 1300 884 978 Email: enquiries@heightsafety.net Web:www.heightsafety.net
CROWN INTERNATIONAL
V follows Crown’s overwhelming success with its inaugural Parramatta project, the A$125 million Gallery complex at 8 Cowper Street, where 90 percent of the 246 apartments were sold off the plan and the remainder were sold within weeks of completion. “Parramatta is a key residential and commercial growth hotspot,” says Sunito. Crown has certainly tapped into a gap left by the departure of the likes of developer Stockland from the mediumdensity sector. In the past three years, it has developed projects with a completed value of A$1.8 billion after buying sites from large developers Brookfield, Lend Lease and Mirvac in Newington and Rhodes. “Our developments are not only underpinned by Australia’s stable economy but, most importantly, we offer a product that is seeing very strong and sustainable growth based on solid principles,” Sunito says. “Sydney is our current area of focus. It is the only major city lagging behind in its
“Our developments are not only underpinned by Australia’s stable economy but, most importantly, we offer a product that is seeing very strong and sustainable growth based on solid principles” 6
“The timing depends on how fast we can build up an investment portfolio and also market conditions”
Focus Construction
supply, producing less than half of the underlying demand for residential property and there is a shortage of 50,000 dwellings. The shortage is reflected on the fact the vacancy rate is only 1.3 percent - far below the 20 years average of 2.5 percent. Sydney also has a very low unemployment rate and is the major city where prices have kept going up in comparison to other major cities in Australia. And there is a new stamp duty policy for first homebuyers. “We’ve reached a tipping point for apartment living in Sydney, I think,” he adds. “There has been a shift in the way people live, away from housing to apartment living with access to facilities, transport and convenience. There are three types of buyers that drive the growth - local residents, who are the younger generation who prefer living in an apartment with great facilities away from the suburban house; the aging population who are downsizing; and new immigrants who are used to living in high-rise apartments near the major centres. Also, investors are looking for safer alternatives as their share portfolios have been affected through the global financial crisis. In comparison to other major CBD in cities such as Hong Kong or Singapore, with a similar GDP of A$300 Billion, Sydney prices are less than half.” He says there is banking support too. People can borrow up to 80-90 percent for residential purchase. “Sydney is historically a 10 percent growth per annum on the basis of a 10 year investment.” The prognosis is good. Sunito says Crown has embarked on a twophase strategy that will see the group undertake an initial public offering within five years. “The timing depends on how fast we can build up an investment portfolio and also market conditions.” Whatever the eventual timing, the signs are clear: Crown Group is on an impressively upward trajectory.
7
Australasia Outlook TNT Multimedia Limited, Unit 209, 16 Brune Street, London E1 7NJ ENQUIRIES Telephone: 00 61 (0) 2 8332 7512 nicholas@tntdownunder.com SUBSCRIPTIONS Telephone: 00 61 (0)2 8518 1223 nicholas@tntdownunder.com
www.australasiaoutlook.com
Crown International Level 11 68 Alfred Street Milsons Point NSW 2061 Australia Tel: (02) 9925 0088 Fax: 02) 9925 0598 Email: info@crowngroup.com.au
www.crowngroup.com.au