This article is from the Australian Property Journal archive
CHINESE-backed property developer Aqualand is hoping for more than $250 million from the sale of the CSIRO’s long-term home in North Ryde, offering 6.56 hectares of North Shore land for redevelopment.
A large-scale data centre, life sciences or build-to-rent project are among potential outcomes for 11-14 Julius Avenue, which has been home to the science research agency since the 1960s.
While the main lease agreement to the CSIRO expires at the end of this year, licence or lease agreements over portions of the site extend until 2023 and rental support is available to an incoming purchaser for up to five years.
Situated 14 kilometres north of the CBD and two kilometres from Macquarie Park, the property comprises two allotments with corporate offices, laboratories, testing facilities, workshops, industrial facilities, storage buildings, a childcare centre and multi-level car parking.
They occupy land with B3 commercial core and B7 business park zonings, the allotments are available to be purchased together or separately through CBRE’s Jason Edge, Chris O’Brien, Sharon Yang and Michael Andrews.
Aqualand acquired the property in 2014 for $170 million.
Data centres and build-to-rent interest expected
“Demand within the life sciences and build-to-rent market for a site so close to a metropolitan railway station will help fuel interest from a diverse buyer pool given the site’s development potential,” Edge said.
Data centre developments have just been given a boost in NSW, with the state government accelerating the planning approval process for projects. According to CBRE, data centre groups acquired circa 55 hectares of land last year in western Sydney alone for hyperscale and cloud sites.
Meanwhile, major institutional players such as Mirvac are looking to add to their build-to-rent pipeline, and global player Greystar Real Estate Partners has raised $1.3 billion to invest in Australia’s fledgling sector with a focus on Sydney and Melbourne.
Oxford is developing the first offering of its type site in the CBD, at Pitt Street South, above the Pitt Street Metro station. In a bid to spur the sector on, the NSW government in February finalised changes to planning and tax policies for developments that include introducing a minimum 50% discount on land tax and exemption on foreign investor surcharges.
Factoring in possible bonus floor space ratio provisions and height limits, there is potential to develop new buildings across both properties with a gross floor area of up to 150,000 sqm.
“This will be a key drawcard for local and offshore investors, as will the site’s close proximity to major occupiers such as Boral, Downer, CSR, Datacom, Sharp Australia, Oracle, BOC, 3M Australia, Ricoh, Honeywell and Roche,” Yang said.
Aqualand remains active in Sydney
Aqualand retains a number of active Sydney projects.
Also on the North Shore, it has been plotting a $1 billion redevelopment of the 168 Walker Street office building in North Sydney into a four-tower precinct with 415 apartments, and two years ago entered into a partnership with Develotek Property Group to deliver over 600 apartments in Chatswood.
Meanwhile, it is keen to move through the $2.5 billion final stage of the Barangaroo project in the CBD that consists of three campus-style office buildings. It acquired an heftier share in the project from collapsed developer Grocon at a hefty discount.
It is also developing a 12.5 hectare site in the north western suburb of Baulkham Hills.
