https://www.afr.com/property/commercial/the-signs-are-good-harry-triguboff-buys-suburban-supersite-20210118-p56uxc
Billionaire developer Harry Triguboff has backed up his end-of-2020 bullishness about the outlook for the Sydney apartment https://www.afr.com/link/follow-20180101-p56jirmarket with the $68.5 million purchase of a 2.8-hectare supersite in the city's outer north-western suburbs, as inner-city apartment investors remain on the sidelines.
Mr Triguboff's Meriton snapped up the triangular site at 263-273 and 277-281 Pennant Hills Road in Carlingford, about 22 kilometres from the Sydney CBD, after it waslisted for sale in November by receivers acting on behalf of lenders of struggling Western Sydney developer Dyldam. https://www.afr.com/property/residential/dyldam-supersite-listed-for-sale-by-receivers-20201102-p56ap1
Dyldam's Pennant Hills Road site could support 700 apartments. Wolter Peeters
The acquisition highlights how the housing recovery is taking off first in the nation's suburbs and regions, with working-from-home buyers remaining wary of the inner city.
The deal, done at the bottom of the market, is also straight from the Triguboff playbook.
The site, which could support up to 700 apartments in a circa $600 million development, is close to the proposed Carlingford Light Rail stop. It came to market with an existing permit for 450 apartments.
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The $68.5 million paid by Meriton was near the bottom of the $68 million to $85 million range administrators HLB Mann said the Carlingford site could sell for in an October report lodged with ASIC.
Mr Triguboff told/The Australian Financial Review/he had bought it at "good value".
The market is improving and there is one reason for that: there is a
lot of money at very low rates of interest. That's the only reason.
—Harry Triguboff, Meriton
"[Apartment] prices are going up, which is good because they came down too much. Rents are stabilising ... the signs are all good," he said.
In December (after Meriton reported a 17 per cent fall in full-year revenue to $1.45 billion for the 2020 financial year due to the pandemic), Mr Triguboff said he was "more surprised than anyone" by the speed of the rebound.
"The market is improving and there is one reason for that: there is a lot of money at very low rates of interest. That's the only reason."
He said on Monday he was looking forward to investors, who have been strong supporters of Meriton's inner-city and suburban projects, to come back to the market.
"At this stage, [that part of the market] is quite weak. Investors have great dreams of the sharemarket, which is overpriced but exciting," he said.
Matthew Meynell, who negotiated the Carlingford site sale alongside colleague James Cowan from Collier International, said there was very strong inquiry on the project "from some of the country’s most experienced developers".
"These developers strongly support the thesis of a residential undersupply from 2023 onwards and are trying to identify a pipeline," Mr Meynell said.
Receiver Costa Nicodemou, from Newpoint Advisory, acting on behalf of senior secured lender Global Galaxy Holdings III, declined to comment.
https://www.afr.com/property/commercial/harry-triguboff-forges-on-after-pandemic-disruption-20201201-p56jir