Chiwayland drops plans for Parramatta project
Chinese developer Chiwayland says it is looking to buy more sites in preparation for the next cycle, while putting its 2830sqm parcel in Parramatta, in Sydney’s west, on the market.
The company, listed on the Singapore stock exchange, has been active in acquiring development sites in Sydney in recent years, but has decided to ditch plans to develop the 14-20 Parkes St site.
This is a “cash-out” strategy for the company, which bought the site a year and a half ago, Chiwayland Australia director Brian Chen says.
“We think it may create more value for us to sell it now than actually building it, which will take about three years,” he says.
Chiwayland has received the nod from the local council to increase the floor space from 11.5:1 to 15:1, potentially enabling the development of about 500 apartments across 44 levels on the Parramatta site.
The Parramatta development site at 16-20 Parkes St.
The company is “tasting the market” for the site, expecting a significant return, while continuing to go through the approval process, Chen says.
The sale, managed by Knight Frank, comes at a time when the residential market is cooling with growing concerns that apartments purchased may not settle. But Chen dismisses the market jitters and says the company is confident in the local market and is preparing for the next cycle.
“We are still confident in Australia’s property market in the next three to five years,” he says. “We hope we can have the capital to buy more sites.”
Chiwayland is also talking to AV Jennings, Stockland and Dexus on potential partnerships for future development, he says.
This article originally appeared on www.theaustralian.com.au/property.
