Brisbane-based developer Tessa Group has joined forces with Super Cheap Auto-founder Reg Rowe's Excel Development Group for $100 million worth of developments, the Australian Financial Review reported.
The newspaper said that Excel, which is also partly owned by Stockland's former head of apartments in Queensland Peter Sherrie, will fund most of four small apartment projects in Brisbane.
The deal involves both parties investing equity in the business but Excel will control the funding arrangements using the wealth of Mr Rowe which is estimated on the BRW Rich List at $871 million.
"In most cases we will be the funder," Excel managing director Peter Sherrie told the Australian Financial Review.
"We can also make a call as to whether we will provide the senior debt or go externally."Excel and Tessa have decided to focus only on developments of around 30 to 50 apartments in areas outside central Brisbane.