EG buys permit-ready Redfern site for infrastructure fund

Cottee Parker penned the permitted six storey building with 45 hotel suites and 20 apartments.

EG Group has purchased a permit-ready site in Sydney’s inner-city Redfern for its Yield Plus Infrastructure 2 fund (YPI2).

The 1060 square metre parcel includes 175-177 Cleveland Street and 1-5 Woodburn St – two commercial assets returning combined annual rent of $323,029.

The land is allowed to make way for a six storey complex (artist’s impression, right) with 45 suite hotel comprising 1739 sqm of the proposed building’s area, and 20 apartments (1268 sqm).

The parcel (outlined) includes two factories considered to have little architectural merit. It was speculated to be worth c$20m when it hit the market mid-year.

A 393 sqm wine bar and 325 sqm retail space also form part of the design.

The property is between Redfern and Central train stations and also has Eveleigh St frontage.

The improvements, with limited architectural significance, have been approved for demolition before (five years ago, as part of a former plan which would have seen the site make way for a five floor, 40-room student accommodation complex).

Since the state’s Urban Renewal Strategy, undertaken by the former Redfern Waterloo Authority, this area was rezoned nearly 20 years ago to allow for greater high density residential.

Apartment buildings of about five storeys have recently been completed around 175-177 Cleveland St.

EG described the property as “an exciting opportunity to participate in the continuing urban renewal of one of Sydney’s most iconic city fringe suburbs” (story continues below).

Two kilometres south of Sydney, it was marketed by Savills’ Stuart Cox and Neil Cooke.

“Positioned on the doorstep of major employment, education and transport infrastructure, it’s an exciting location and an ideal setting to showcase EG’s design excellence and Build in Good (BIG) thinking around social, economic and community benefit,” the fund’s associate director, Mark Watson, said.

YPI2 was launched in August, 2016 with a $750 million pool and mandate to source yield producing real estate close to urban renewal zones and transport infrastructure.

When the site was listed for sale mid-year, it was speculated to be worth about $20m.

At that time, Singapore’s Wee Hur Holdings Ltd, via its local fund manager, Intergen Property Group, had just paid $46m for 90-102 Regent St, Redfern – a 1287 sqm parcel abutting 23 Gibbons St, a holding it picked up last year for $52m.

The 1366 square metre BP service station site can make way for an 18-level building. It carried a speculated c$50 million guide when it was listed at the same time as 175-177 Cleveland Street.

That amalgamated property is now earmarked for two major student accommodation facilities with c900-beds.

It neighbours a BP service station at 104-116 Regent St (pictured, right), on 1366 sqm, which was listed four months ago with 175-177 Cleveland St.

With the potential to construct an 18-level tower, that land was estimated to be worth more than $50m.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco