Strike Force Bandt detectives arrested Mr Kelsall today.
It is understood that police will allege the two men began talking as the older man walked back from a nearby hotel, where he had been drinking, after it closed in the early hours of the morning.
Police will allege that there was no sign of forced entry at his unit, suggesting the two men entered the building together.
Court papers allege Mr Kelsall stole from Mr Huxley in the early hours of September 8.
The two men, who police believe didn't know each other, lived minutes apart in the lower north shore suburb, according to court documents.
Mr Breton told reporters outside court that his client was co-operating with police.
"It's a very stressful time for everybody involved, he's doing everything to assist police with their inquiries,'' he said.
Asked if his client would fight the charges, Mr Breton said: "that's a matter for later conversations''.
