Hyundai Engineering & Construction is stepping up its push into overseas real estate development, joining forces with Korean public and private-sector partners to build a $350 billion ($255 million) high-rise rental apartment project in Sydney.

According to Hyundai E&C on Tuesday, it has signed an agreement with the Korea Overseas Infrastructure & Urban Development Corporation and Korea Investment Real Asset Management to develop a 45-story apartment building in Chatswood, northern Sydney.

The agreement follows a memorandum of understanding signed by the three parties in February this year, under which they formed a Team Korea consortium to jointly pursue real estate investment opportunities in Australia, Bulgaria, New Zealand and the US.

The 260-unit build-to-rent Chatswood project, which marks the consortium’s first venture, is located about 50 meters from Chatswood Station, a major transportation hub in northern Sydney.

Hyundai E&C said it expects the residential tower to become a new landmark on the local skyline as the site represents one of northern Sydney’s largest commercial districts.

Hyundai E&C has been involved in the project since early development, and will provide equity investment while overseeing technical and design reviews and overall construction management.

According to the Korean builder, Australian firm Hickory will handle construction while local developer Novus will be responsible for operations. Demolition of existing structures is scheduled to begin in November, followed by main construction in March next year. Completion and occupancy are targeted for October 2029.

“Hyundai E&C is making an entry into advanced overseas markets where housing demand is expected to grow, focusing on strengthening our competitiveness based on our distinctive capabilities in (engineering, procurement and construction), housing construction technology and products as a key part of its growth strategy,” a Hyundai E&C official said.

“We will secure high-quality local housing construction data and networks through various overseas projects while developing optimal business strategies to establish an early foothold in the global real estate market."

By Kan Hyeong-woo (hwkan@heraldcorp.com)