Yuhu locks in Sydney’s Bakehouse Quarter

Yuhu locks in Sydney’s Bakehouse Quarter

26 April 2019

Yuhu Group has settled a record-breaking purchase in Sydney’s inner-western suburbs, picking up the Bakehouse Quarter at North Strathfield from listed fund manager BlackWall, says The Australian.

The $380 million six-hectare former Arnott’s biscuit factory and warehouse site can potentially be redeveloped into a $1 billion mixed-use project.

The Bakehouse Quarter represents a $420 million investment for Yuhu after taking into account improvements and stamp duty.

The precinct will be anchored by Aldi supermarket, Arnott’s, Kingpin, Fitness First and WOTSO WorkSpace, and will include up to 70 tenancies in total.

After striking a deal on the Bakehouse Quarter two years ago, Yuhu, now led by Mr Huang’s son Jimmy, had made a series of instalments through option and pre-payment fees totalling $58 million ahead of the final settlement due on April 18, says the AFR.

The Yuhu property empire is linked to billionaire Chinese property developer and political party donor Huang Xiangmo, who is currently living in Hong Kong after being denied entry back into Australia earlier this year.

His permanent residency visa was also cancelled, with security agencies reportedly having concerns about Mr Huang’s links to the Chinese Communist Party.

Mr Huang is now an adviser to his Yuhu Group, which is owned by his wife Jiefang and his son Jiquan (known as Jimmy).

Yuhu’s chairman Jimmy Huang said the acquisition of Bakehouse Quarter was in line with the company’s long-term strategy of investing in prime assets with well-established income streams.

“The hundred-year-old site together with its iconic architecture and relaxing ambience creates this incredible blend of rich history and culture that just tastes distinctively Bakehouse Quarter,” he said.

“Millions of us grew up with Arnott’s biscuits, and the emotional attachment associated with the precinct will carry on in the fabric of the area.

“With further support from the well-established modern-day transportation infrastructure and precinct facilities, the unique Bakehouse Quarter will go on to sow new memories for local families and beyond.”

The deal comes after a tumultuous year for the Sydney-based property developer and investor, after taking over Chinese conglomerate Dalian Wanda’s Sydney and Gold Coast residential and hotel mixed-used projects for $1.13 billion in early 2018.

Both will be anchored by five-star hotels with an end value of $2.8 billion. The Jewel development has topped out and construction at One Circular Quay is ongoing.

Apartment sales at Jewel are ongoing while sales at One Circular Quay have not begun.

Yuhu bought both of the half-completed assets from Dalian Wanda after the Chinese conglomerate was forced to divest its overseas assets.