New Sydney Olympic Park residential hub to spark developer contest

Savills Australia welcomes 14,423sq m of land in one of Sydney’s most sought-after suburban locations to market

Two three-storey office properties in Sydney’s Olympic Park have come to market as an exciting redevelopment project, as the suburb continues its evolution into a flourishing lifestyle hub.

The 14,423sq m site, which comprises 6 Parkview Drive and 102 Bennelong Parkway and is being marketed as Quad Two and Three, has mixed-use and apartment redevelopment potential (subject to council approval), and is being sold as a going concern.

GJS Property’s Jason Wright and Chris Bailey, in conjunction with  Neil Cooke and Stuart Cox of Savills Residential Site Sales, have been appointed by Growthpoint Properties Australia to market the property via expressions of interest, and are expecting offers north of $70 million.

Mr Cooke said interest was anticipated from a variety of development groups looking for a residential development play with strong underlying net income.

“There are limited opportunities capable of providing a high-quality mixed-use development situated within such close proximity of all desired amenities,” he said.

Mr Cox said the site would be attractive to developers for the secure income available during the holding period, generated from a combined 10,389sq m of Net Lettable Area in the two five-star NABERS-rated office buildings.

“This is a highly developable parcel of land benefitting from generous planning controls, the advantage of time, and a substantial passing income of $3,800,432 per annum,” he said.

“In their current state, the properties offer strong fixed rental growth, with all leases incorporating annual increases between 3.5 percent and 4.0 percent.”

The site is zoned B4 Mixed Use under the provisions of the State Environmental Planning Policy (State Significant Precincts) 2005 but will benefit from density and height increases as part of the Sydney Olympic Park Authority (SOPA) Master Plan 2030.

“Due to the Master Plan 2030, which is pending gazettal, coupled with established and proposed infrastructure, the site is strategically positioned to capitalise on apartment redevelopment upside and create a landmark vision for a lasting legacy,” Mr Cox said.

Mr Cooke said the vendor had commissioned a feasibility study through renowned architecture firm, Turner, which has been actively involved with the SOPA’s Master Plan 2030.

“The feasibility study outlines the potential for 33,722sq m of Gross Floor Area, subject to council approval, providing up to 446 units and a building height limit of up to 15 storeys,” he said.

“Sydney CBD and district views that could be attained through a redevelopment are unlikely to be built out due to the Badu Mangroves and Bicentennial Park to the east.”

Prominently located in the rapidly evolving commercial and residential centre of Sydney Olympic Park, the properties are within a five-minute walk of the suburb’s train station, retail core and sporting infrastructure that played host to the 2000 Olympic Games.

“With its close proximity to the Sydney and Parramatta CBDs, and its free-flowing connectivity with public transport, Sydney Olympic Park is one of the most sought-after suburbs for commercial investment and residential development in metropolitan Sydney,” Mr Wright said.

“Following the Olympics, developers set their sights on the emerging suburb, and soon after high-quality commercial and residential buildings began materialising.

“Now 18 years later, the suburb is an established urban oasis benefitting from significant infrastructure and private investment.”

Mr Bailey said developers working on surrounding residential and mixed-use projects had succeeded in capitalising on the versatility of the precinct.

“In recent years, Sydney Olympic Park has been positioned as a highly desirable place to live, work and visit,” he said.

“Quad Two and Three have the potential to combine all of these elements on a blank canvas.”