MMJ Real Estate and Knight Frank have recently completed the sale of a large medium density residential development site at Erskineville for $32.55 million.
Following an Expressions of Interest marketing campaign concluding last year, the sale bucked the recent trend for the sale of this type of property being acquired by offshore Asian interests and has instead been sold to a local buyer. The property has been purchased by a Joint Venture vehicle establishment between Australia REIT – Abacus Property Group and eastern suburbs based developer, Linear Property Group.
This rare residential development opportunity is located only minutes from the Sydney CBD. The property situated at Erskineville, currently comprises 15 strata title industrial units, developed over a site of approximately 8,323 square metres.
Chris Johnson, CEO of MMJ Real Estate commented that “the property forms part of the 17 hectare Ashmore urban renewal precinct which is designed to transform predominantly industrial properties into a thriving residential community providing new facilities including a park, shopping centre, day care centres and various pedestrian/cycle ways.” Johnson went onto say that under the provisions of the scheme, new residential projects close to this property have already been completed including “Motto, Glo”, with the latest projects currently under construction, being Erko”, which is being developed by Leightons in joint venture with Lasalle Investment Management and “Eve’ which is being developed by Melbourne based group – Fridcorp..
Bob Houston – Director at MMJ Sydney said that “under the City of Sydney’s LEP 2012 and DCP 2012, the site had a basic floor space ratio (FSR) of 1.5:1, with a 10% additional bonus allowance for design excellence, taking the total potential FSR to 1.65:1. This will allow approximately 13,730 square metres of gross floor area to be developed on the site (STCA). Subject to the actual design, achieved density and the average size of the apartments, a proposed development on the site could yield in the vicinty of 170-180 apartments”.
Mr Johnson went onto say that the market for the proposed end product continued to be extremely strong and with the further recent 25 basis point reduction in interest rates announced by the Reserve Bank, the demand is expected to continue.
About MMJ Real Estate:
MMJ Real Estate (MMJ) is a leading provider of property related services. The MMJ network currently comprises eight offices in New South Wales, the ACT and WA.
With a team of over 150 professionals, MMJ expertly delivers most commercial, retail, industrial and residential services, including Sales, Leasing, Valuation, Property Management, Project Marketing and Town Planning to its corporate, institutional and private clients.