The buyer of a major Sydney development site, with views to the Sydney Harbour Bridge, Cook + Phillip Park and St Mary’s Cathedral, says he is not concerned about COVID-19 and its substantial affect on apartment development sentiment.
As city apartment prices plunge by as much as 20 per cent due to the pandemic, luxury eastern suburbs developer Rafi Assouline agreed to pay a bullish $185 million for a site in William Street, Wooloomooloo, in concert with a couple of cashed-up backers including veteran Eastern Suburbs developer Allen Linz and Phoenix Property Development head Trent Winduss.
The 5000sqm site, known as the No Birds site, fronts 180 William Street and was sold by Arnold Kluck under a three-year-plus settlement agreement.
It is understood to have attracted a number of big-name developers including Mirvac, Thirdi Group and Time & Place during the marketing process.
Assouline told The Weekend Australian he plans more than half-a-billion-dollars worth of development on the site, including about 200 ultra-luxe apartments, high-end ground-floor food and retail outlets and possibly a small boutique hotel.
Assouline said there had been a lot of competition for the site and he was not worried about COVID-19.
“I have a three-year-plus settlement agreement — I have a lot of time,” said Assouline, who added that he had brought in Linz and Winduss as pure investors in the project. “With the worst estimate, surely we will be out of this situation in that three-year-plus period of time. There’s a big lack of stock.”
He said he was an experienced developer, having just sold a $10 million clifftop penthouse in Bondi’s Hastings Parade to Afterpay co-founder and CEO Nick Molnar.
The three-bedroom apartment with a rooftop terrace was an off-market purchase by Mr Molnar from Mr Assouline’s HSN Holding company. Adding to Mr Assouline’s confidence in the William Street site is the fact that he does not have to pay the full acquisition price for at least three years and would seek to pre-sell apartments in the complex to complete the deal.
“Most of the deposit I have funded myself,” he said.
“This is such a significant site. We will create a lot of jobs and bring so much activity and employment. This is one of the biggest sites in the city. The views are ridiculously good.”
Assouline said the northeast-facing site sported views of the nearby cathedral, the Harbour Bridge and Garden Island.
He is speaking to architects and is yet to submit a development application.
Meanwhile, property sources close to the deal said that the development site had been quietly offered for a long period.
The vendor had wanted to sell and move the business to a new site in Sydney’s south.
The terms of the deal are likely to involve an upfront payment of about $20 million and then a settlement of up to three years.
Kluck declined to comment.
– with Ben Wilmot
This article originally appeared on www.theaustralian.com.au/property.
