Developer Coronation Property has acquired a major apartment development site in the inner Sydney suburb of Erskineville for $315 million.
The 50,000 sqm site at 56 Ashmore Street and 165-175 Mitchell Road comprised the future stages of the Park Sydney project, which is being developed by Greenland Golden Horse.
Coronation will deliver a further 1,010 residential apartments on the site, with the intent of combining a mix of build-to-sell and build-to-rent formats, as well as 5,000 sqm of retail space.
The mixed-use development will include a supermarket, specialty boutique stores, cafés, restaurants, green spaces, and pedestrian pathways.
Situated four kilometres from the Sydney CBD, the site was one of the last and largest unencumbered freehold parcels of land in the City of Sydney.
Coronation Property Managing Director Joseph Nahas said the Erskineville site aligned with its strategy to secure well-located sites in established and high-performing markets.
“The former industrial site is in an incredible location on the fringe of the rapidly transforming precincts of Alexandria and Waterloo, and is also close to Sydney Park, which is one of the city’s most loved green spaces,” Nahas said.
“We expect that our focus on delivering quality design, and premium amenity at Erskineville, along with its prime location, proximity to Sydney CBD, parks and other key infrastructure, will elevate the living experience of our residents.”
The Erskineville project is set to join Coronation’s growing Sydney portfolio, with the company developing over $7 billion worth of major mixed-use projects across the city.
Coronation’s other projects include Mason & Main in Merrylands, Ashbury Terraces in Ashbury, 8 Phillip Street in Parramatta, Charlie Parker in Harris Park, Moore Point in Liverpool, and a new development in Chatswood.
The Colliers team of Guillaume Volz, Eugene White, Henry Burke and Joseph Lin sold the site.
“Notwithstanding recent headwinds with construction pricing and rising interest rate, 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 following years of minimal new commencements,” 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 pipeline in a market typified by limited quality sites.”
In April this year, Fortis bought an apartment building in Bronte, Sydney for $44 million with plans to develop it into luxury homes worth $125 million.
Stockland and Western Sydney University announced plans in February to develop a 99-hectare site at the university’s Penrith campus into a mixed-use precinct, including a six-star green star urban neighbourhood with a large town centre integrated with the existing campus facilities.