Home World Business Greenland to launch $1.6b Sydney Park City

Greenland to launch $1.6b Sydney Park City

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The planned $1.6 billion mixed use development by Greenland and Gold Horse (GH Australia) is gaining momentum with the launch of the site that will deliver parklands for the Erskineville area.

Greenland and GH Australia will now rejuvenate the 6.9-hectare industrial precinct and transform it into a what they say will be a “vibrant residential and retail community centre”.

Impression of the project concept plan of the 6.9ha industrial precinct, Park Sydney. Impression of the project concept plan of the 6.9ha industrial precinct, Park Sydney. Photo: supplied

The joint venture partners bought the site, now called Park City, in 2016 for $380 million from Goodman Group, which comprised old warehouses and very few green, communal areas.

Goodman sold the asset as part of its urban renewal program, where it deems land non-core for its purposes, but allows developers ro enter and transform to mixed use inner city projects.

The group says it has about $1 billion of such areas across the city that is can sell and with high-rise developments in demand, investors such as Greenland are in hot pursuit.

Mirvac is also looking at developing mixed use, inner city sites, according to its new head of residential, Stuart Penklis​.

Mirvac chief executive Susan Lloyd-Hurwitz said the group’s residential business “is very well positioned to deliver strong earnings”.

According to CLSA’s analysts, residential developers, Mirvac and Stockland reported another period of record contract on hand of $3.1 billion and $1.4 billion in the February reporting season, strong metrics and margins, with guidance assuming above-cycle margins to be maintained for the medium term.

“Both companies tightened the 2017 full year guidance, which we see as a sign of confidence in the residential market,” said CLSA’s head of Australia real estate Sholto Maconochie.

“Defaults picked up slightly to 2 per cent for Mirvac but 70 per cent were resold for a profit and those not sold were immaterial to earnings, with Lendlease reporting a less than 1 per cent default rate.”

The concept plan for Park City, being Greenland Australia’s largest project yet, in conjunction with GH Australia, is for about 1400 apartments at the site in Erskineville. It was approved in March 2017 and will comprise a nine building development, ranging in height between two and eight storeys.

Greenland Australia and GH Australia are working with the Erskineville community to ensure a destination is created that the locals can engage with and enjoy.

Under the plans, the warehouses are set to be replaced by a retail offering, new streets and shared pathways, and a 7400 square metre public park that will have a range of features designed to encourage active use by the whole community.

Sherwood Luo, managing director of Greenland Australia says Park Sydney is going to transform the last undeveloped site of this scale, this close to the CBD.

“It is unprecedented for this many new homes with a fully integrated retail space on a park, to be built at any one time in the City of Sydney. We are equally determined to respect and improve on local amenity,” Mr Luo said.

He said that Greenland Australia and GH Australia are formally committed to design excellence with the City of Sydney. No fewer than five design competitions will be held throughout the different stages of the development. A mix of established and emerging architects will be involved in the project.

The new site comes as Greenland Australia looks to increase its presence in Sydney.

Its first completed residential project, Lucent at North Sydney, settled in August last year and there are five developments at varying stages of completion at present.

The group is also behind Sydney’s tallest apartment tower, the iconic Greenland Centre in Bathurst Street, being 479 apartments. This 68-storey build is expected to be completed by late 2019. Phase one of the Greenland Centre, Primus Hotel Sydney, was completed in December 2015.

There is also the low-rise Leichhardt Green at Leichhardt for 224 apartments, with a proposed completion in 2017/18. 

The construction of Omnia at Potts Point has started, while earthworks are under way at nbh at Lachlan’s Line, Macquarie Park for 879 properties, and construction will start later this year.

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