Mirvac is acquiring Nine Entertainment Limited 2.9 hectare Willoughby site as a development play.
The holding was offered last April by Lotus Property Fund and Hong Kong based Euro Properties shortly after approval was granted for a redevelopment with 460 dwellings (artist’s impression, top).
At the time, 24 Artarmon Road was estimated to be worth about $200 million.
Instead Mirvac is outlaying $249m in the pocket – adding the neighbouring TX Australia transmission tower.
All up, the ASX listed group now controls 3.2ha in the street.
Coincidentally Mirvac developed the Castle Vale project more than 40 years ago at 2 Artarmon Rd, next door.
Willoughby is six kilometres north of Sydney.
Mirvac readies site for development
Nine will soon quit Willoughby for North Sydney.
The media group sold the outgoing property to Lotus and Euro for $147m in 2015.
Mirvac said, subject to approvals, it intends to raze the TX transmission tower.
It will start marketing the permitted dwellings soon (story continues below).
“A range of community benefits are proposed, including approximately 6,000 square metres of publicly accessible open space, the delivery of complementary retail, new and upgraded connections and a mix of dwellings which will contribute to housing diversity in the area,” a company statement added.
Happy buyer and seller
Mirvac head of residential, Stuart Penklis, said the Willoughby site is a large scale, masterplan-approved holding in a highly sought-after location.
“Close to all the rich amenity and social infrastructure of Sydney’s lower north shore, and offering direct access to the Sydney CBD, the site has the exciting potential to offer our customers all of the convenience of this desirable location with the high-quality built form outcomes that Mirvac is well recognised for,” the executive said.
“The site was first occupied by the Nine Network in the 1950’s and has played a significant role in shaping Australian culture for more than 60 years,” he added.
“Our vision is to celebrate this unique history and set a new benchmark in design excellence and integrated community living to create a legacy that can be enjoyed by all.
“This acquisition is consistent with our strategy and reinforces our ability to identify and secure opportunities on capital efficient terms, in the right location, delivering the right product at the right price.
“Extending our residential pipeline will enable us to service the growing demand for new homes, as the housing market continues to recover.
“We look forward to working with Council and the community to now deliver this very exciting new project,” the executive added.
Lotus managing director Michael Jiang said the joint venture’s goal was to add value to the block.
“We are very satisfied with what we have achieved and are pleased with the final outcome,” he added.