UBS backing could put Grocon in big league PRIVATE developer Grocon's latest landmark project, The Ribbon, has already drawn interest from investors, with global heavyweight UBS Global Asset Management identified as a potential buyer. The Australian this week revealed that Grocon and leaseholder Markham Corporation had lodged fresh plans with the NSW government to redevelop the Sydney IMAX Retail and Entertainment Complex at Darling Harbour into a $500 million-plus complex. The proposed tower has been touted as a potential home for internet giant Google, though a leasing deal is yet to be signed. While talks between Grocon and UBS GAM are thought to be at an early stage, and the parties would not comment, the Australian developer has a model of seeking global institutions to back its projects using innovative forward funding structures. In just over a year, it has won about $1.2 billion in support for its projects. The listed Dexus Property Group and its wholesale property fund are investment partners on Grocon's $550m development of 480 Queen Street, Brisbane. Global fund managers Invesco and CLSA are also backing the $230m Swanston Square Apartments in Melbourne. A real estate fund managed by Credit Suisse also owns Grocon's 55 Elizabeth Street development. On some accounts, UBS GAM would seek a broader tie-up with Grocon. The group would have the capacity to back Grocon's efforts with Melbourne figure Harry Stamoulis on a proposal for a $600m tower at the western end of Collins Street. Their planned 555 Collins Street project would be anchored by a prime commercial tower of as much as 60,000sq m, though it is also yet to secure an anchor tenant. While UBS GAM may also look at other Grocon projects, sources said the shape of any "bulk deal" was yet to be finalised. Winning the backing of UBS GAM could propel Grocon into another league as it competes against the likes of Leighton and Lend Lease, and having a powerful takeout partner may give it an edge. UBS GAM this year flagged plans to bulk up locally and appointed former Queensland Investment Corporation managing director Trevor Cooke as global real estate head for Asia Pacific in May. UBS GAM has separately been reported to be among the groups showing interest in QIC's operations, which the Queensland government is reviewing. However, a tie-up with Grocon would represent a more direct real estate play, for the UBS GAM global real estate business, which controls about £42.7bn ($74.1bn) in Asia, Europe and the US. Grocon may also be open to a larger play as an earlier strategic alliance with Colonial First State Property, in which the listed Commonwealth Property Office Fund picked up $581m of office assets, has not developed much further.