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News release


Sydney harbour residential development set to cause a surge of interest

61 Lavender Street, Sydney is announced for sale

​​SYDNEY, 6 February 2014 – A residential development site in Sydney’s high-profile North Shore harbourside suburb Milsons Point is announced to the market. 

The property at 61 Lavender Street is potentially the last remaining harbour-front residential development site available in the area, and features panoramic views of the iconic Sydney Harbour Bridge.

Jones Lang LaSalle’s James Aroney and Robert Harris are managing the sale of the 20-level building in collaboration with CBRE’s Scott Gray-Spencer and Simon Kasprowicz. The property is DA approved for the construction of a minimum of 95 residential apartments.

Jones Lang LaSalle’s NSW Director, Sales and Investments James Aroney said they are expecting a surge of interest in the property. “Sydney’s residential stock is sought-after, and activity has ramped up in the last six months from offshore buyers – particularly from China, Hong Kong, and Singapore.

“Given the limited supply of quality residential development stock and the demand for it, we’re expecting highly competitive interest.” 

Mr Gray-Spencer said the property is effectively de-risked, with council consent granted. “Physical commencement has begun at 61 Lavender Street, including basement extension works which have already been completed, removing what can be a developer’s biggest hurdle of obtaining planning approvals. 

“De-risked properties remain sought after, and in the case of this property, construction could begin as soon as the building is vacant.”

As part of the physical commencement achieved, all Section 94 contributions have been paid by the vendor.  

Milsons Point is an exclusive residential enclave on the northern foreshore of Sydney Harbour, featuring direct access to the harbour foreshore and parklands, and high-quality restaurants, cafes and providores. The area is uniquely well-serviced by public transport, including ferries. 

Similarly prestigious and successful surrounding residential developments include the former Eagle House on Alfred Street which has been transformed into “North” apartment tower; the former Sharp offices, known as “Latitude”, “Halcyon”, and the recent “Bridgehill Residences”. 

Jones Lang LaSalle’s Director of Sales and Investments for North Sydney Robert Harris said he has seen a history of residential developments in Sydney achieve success. “The recent sale of 227 Elizabeth Street, sold to Far East organisation, shows Sydney’s appeal. While this property is in a different location, both are residential conversions, both feature large apartments and both will appeal to the same type of key buyers.” 

According to Mr Kasprowicz, Sydney’s high-end apartment market is massively under-supplied. “This is one of the key reasons why this project will achieve benchmark realisation rates at the time of the development. Uniquely, the project contains many through apartments which offer two balconies and dual aspects offering not only breath taking views over the harbour to the bridge, but also views to the north over the North Sydney CBD and down to Cremorne.”

Mr Kasprowicz said the apartments are large so the possibility exists to increase density and add a larger amount of smaller apartments, increasing potential return.

The property currently comprises an 18-storey commercial office building with three levels of basement car parking for 106 vehicles, constructed circa mid-1976 and refurbished recently. Over 80% of the proposed apartments have views across Sydney Harbour, including the Sydney Harbour Bridge. 

The building is substantially leased, offering stable holding income. Vacant possession of some floors is available in early 2017 to enable onsite marketing to take place with the remainder of the building being vacant in March 2018.

Expressions of Interest are expected to close on Tuesday, 18 March 2014.