This article is from the Australian Property Journal archive
AN industrial pocket of Leichhardt in Sydney’s inner-west suburb is quickly becoming a residential project hotspot, with developer Desane acquiring a warehouse site for $21 million with zoning approval for around 50 apartments.
The 141 Allen Street site of 2,782 sqm is zoned R1 General Residential and currently has an eight-metre high industrial facility and 42-metre frontage.
It falls under the Allen Street Leichhardt Master Plan, as does the adjacent 141 Allen Street property that recently received consent for 139 residential apartments.
Chinese developer Changfa Investments paid circa $55 million for the 7,149 sqm industrial site one year ago with intentions for a project comprising six-buildings between four and six storeys and 124 basement parking spaces.
ASX-listed Desane has pinned its hopes to the long-term growth potential of the region.
Head of property, Rick Montrone said, “this is an extremely rare development opportunity in one of Sydney’s most highly sought after city fringe suburbs. Less than 750 new apartments are currently under construction or in the development pipeline beyond the existing site in the suburb of Leichhardt”.
“With notably limited land supply together with proximity to the Sydney CBD and excellent access to schools and other public services, we believe the inner-west region will continue to outperform the rest of the Sydney residential market in the medium to long-term”, Montrone added.
Desane had forecast acquisitions of this type in its half-year report.
The group been locked in an ongoing courtroom battle with the NSW government over the Roads and Maritime Services’ compulsory acquisition and the resulting compensation payment for its 5,200 sqmsite in nearby Rozelle for the Westconnex M4-M5 Link project.
Desane refused the $18.4 million compensation offer after lodging a claim for more than $100 million. In June 2015 it had submitted a formal masterplan and rezoning plan for the site that included around 200 residential apartments and 1,800 sqm of retail and commercial floor space.
The Supreme Court of NSW heard last month from a former RMS project director involved in the road project that the Desane site would not impacted by the works, according to motorway plans. Desane has since extended the court’s injunction on the NSW government from taking the site until the court reaches a decision.
Australian Property Journal
