Rosebery development site has $100m price tag
The privately-owned Rosebery Properties and Filetron, a company run by Ben Cottle, is selling three separate lots of land with a value of more than $100 million in Rosebery – an area undergoing rapid transformation from industrial to residential.
Mr Cottle is also the founder and managing director of FDC Construction, one of the larger construction companies with offices in all of Australia’s capital cities. Founded in the early 1990s, the company is earning half a billion dollars and employs 300 workers.
The sale in Rosebery is located within one of Sydney’s strongest new apartment suburbs, with a potential gross floor area of 32,864.40 square metres and a height limit of 29 metres.
The land is at 12-40 Rosebery Avenue and 108 Dalmeny Avenue, and consists of 15,215 sq m of land with existing industrial and commercial buildings equating to 11,722.80 sq m, which generates an existing rental income in excess of $2 million per annum.
The agents on the deal. Michael Crombie and Trent Gallagher of Colliers International, said demand is expected to be strong as suburbs on the City fringe, such as Rosebery, are see as some of the hottest markets in Sydney for residential apartments.
Mr Crombie, the director in charge of South Sydney for Colliers International, said, it was seen as “one of the best sites to come onto the market in 2016. It has great scale, over multiple titles, quality buildings and solid income, allowing staging of the development”.
Rosebery and surrounding suburbs are slowing morphing from industrial zones to “trendy” residential areas complete with new food outlets and a burgeoning cafe society.
The site is also near the multi-billion-dollar Green Square development, which will transform that area into a major mixed use and residential area.
Investors hold little fear of any over-supply of apartments in Rosebery given its proximity to Sydney airport, the eastern suburb beaches and universities and the City.
“Well known developers have focused heavily on the Rosebery precinct, including Meriton, Mirvac, Stockland, Top Place, LivStyle & JQZ, as Rosebery provides a lifestyle choice for the discerning investor or occupier, with so many new trendy eateries within the precinct,” Mr Crombie said.
According to Mr Gallagher, the director, property sales & leasing for Colliers International, rates being achieved in nearby residential development projects such as “Symphony” by Meriton – a 215-unit brand new development on Epsom Road in Rosebery, due for completion in mid-2017 – are as high as $19,000 per sq m.
The leasing market is also strong in the area with private firm Martin Sales Pty Ltd, paying $785 per sq m per annum for a 191 sq m retail space at Shop 3, 1-3 Dunning Avenue, Rosebery, from Epsom Property Group Pty Ltd through Jessica Male and Charlie McKenzie, JLL.