Aussie Unity Real Estate director Vissa Esan was killed during a stabbing attack off Pendle Way at Pendle Hill last Thursday morning.
Mr Esan, 47, was found covered in blood after an alleged attack by a 33-year-old Toongabbie man.
Mr Esan, who owned the Pendle Hill real estate company, arrived at work early and was believed to be putting out the garbage in a laneway that runs alongside his office when he was attacked.
He died a short time after suffering at least one stab wound to the chest.
No weapon was recovered. It remains unclear if the attack was targeted or random.
The offender was arrested on Thursday morning at a cement company at Hallmark Street about a kilometre north of the crime scene.
The man, who is in custody, did not appear in court on Friday and no bail application was made on his behalf. His lawyer said he may apply to have the case dealt with under section 32 of the Mental Health Act. Friday's hearing was adjourned until May 8.
Mr Esan and his pregnant wife lived at Kellyville after emigrating to Australia about 20 years ago from Sri Lanka.
Tributes to the popular businessman have poured in from family and colleagues.
A memorial service was held Monday afternoon at the Redgum Centre at Wentworthville.