Billionaire seeks partner to finish $88 billion city

The giant privately developed city, about 26 kilometres south of Brisbane, has a potential end value of $88 billion.

Eighty-year-old Mr Sinnathamby and his long-time business partner Bob Sharpless have spent the past 27 years transforming the 2860-hectare former forestry site (bought for $8 million in 1992) into a home for about 43,000 residents complete with housing estates, office towers, apartments, schools, shopping centre, sports facilities and parkland.

But with only 25 per cent of the project completed – about $18 billion in end value – the pair are hoping to secure a development partner to complete the remaining 75 per cent over the next 20 or so years and “turbo charge” its success.

Mr Sinnathamby flagged his plans to bring in a development partner in December, telling The Australian Financial Review he was going to take it to market.

“The reason is there’s a lot of heavy lifting to be done. A lot of heavy, heavy lifting to be done,” he said.

Commenting on the appointment of Moelis, Mr Sinnathamby said the group was seeking a partner, or consortia of partners, who were committed to working with Springfield City Group to fast-track the growth of the city’s economy and build even greater amenity for its people.

Ben Boyd, Moelis Australia managing director, will spearhead the campaign to secure a development partner. Mr Boyd said Moelis would engage with likely parties over the next few months, but stressed there was no fixed deadline.

“We’re not going to rush it … it will take as long as it takes.”

Mr Sinnathamby’s daughter Raynuha, who leads the Springfield City Group, told The Australian Financial Review  the search for the right partner would be “an interesting exercise” and would not be rushed.

“We do not want to end up with a hokey pokey village, but a competitive CBD,” she said.

“Over the last 27 years we’ve achieved quite a lot through partnerships.”

These include the main shopping centre, developed by Mirvac, and a 20-year residential development partnership with Lendlease, which has invested more than $1.3 billion into Greater Springfield.

She stressed the family would not compromise its original vision, but declined to say how much capital would be needed to complete the project.

“We’re not looking for someone with an open cheque book,” said Ms Sinnathamby. Instead, the focus was on finding a partner with the right skills set.

Early priorities will focus on developing out the healthcare and education precincts – anchored by a 1200-bed hospital and University of Southern Queensland campus – as well as the land around the CBD and train station.