Coronation Property has added another inner-city development site to its book.
The five hectare former industrial investment at 57 Ashmore Street and 165-Mitchell Road, Erskineville, is setting the group back $315 million.
The vendors, Greenland and Golden Horse Australia (also known as GH Australia), had earmarked the parcel as the third stage of its Park Sydney project.
Coronation will now deliver that.
Erskineville is four kilometres south of Sydney.
What is planned
Coronation said it will construct c1010 apartments – some which will be Build to Rent.
About 5000 square metres of retail is also planned, with a Woolworths Metro and dining precinct.
A park is mooted too.
Combined with stages one and two, Park Sydney covers 6.9ha and is expected to have an end value of c$1.6 billion.
“The acquisition…aligns with Coronation’s strategy to secure well-located sites in established and high performing markets,” the group’s managing director, Joseph Nahas, who owns the company with prominent local lawyer John Landerer, said.
Swings and roundabouts
Interestingly, the Erskineville block was until a few years ago an industrial investment held by Goodman – which last month paid over $200m for a shopping centre in neighbouring Alexandria to convert as a multi-storey warehouse (story continues below).
In this pocket of Sydney too are other ex-commercial parcels being repurposed as part of the Green Square urban renewal – in Beaconsfield, Roseberry and Waterloo.
Two months ago, we reported Deicorp, which like Coronation is Sydney-based, outlaid $180m for a 2.86ha apartment development site, also in the Green Square precinct, at Zetland.
“Notwithstanding recent head winds with construction pricing and rising interest rates, buyers of major Sydney sites are looking through current sentiment and considering the underlying strength of the market based on 14-year low new apartment completions and ongoing undersupply,” Mr Volz said.
“Coupled with the emergence of major BTR buyers that see value in the rising rental market, activity for major sites, such as Park Sydney, is still strong from developers looking to secure their pipeline in a market typified by limited quality sites,” according to the executive.
Area transforming: Coronation
Mr Nahas added that the area around its new site, including Alexandria and Waterloo, is transforming.
“[The property] also benefits from its proximity to Sydney’s major universities, hospitals, retail precincts and restaurants, and is situated just 650 metres from Erskineville station, from where it is only two stops to Central or a 12 minute journey to the Sydney CBD,” he said.
Elsewhere in Sydney, Coronation is behind residential projects at Ashbury, about 10km south west of town, Chatswood, Liverpool and Merrylands, the latter which it purchased from Stockland in 2020 for another BTR project.
A 55 level Parramatta tower, to be part-occupied by QT Hotel, is also on the cards.
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