Bargain for half-built project

„ DALLAS SHERRINGHAM

AHALF-built project in downtown Blacktown has been purchased at auction for a bargain $11M sale price.

Sydney Developer Merhis Corp’s partially built 184-apartment tower in the CBD went to auction after the company went into liquidation.

Merhis Corp went under and its director Mark Merhi left the country earlier this year.

Located four minutes’ walk from Blacktown Station and seven minutes from Westpoint Shopping Mall, the property has an approved gross floor area of 14,144sqm.

The 1966sqm site at 29-31 Second Av had an approved development application and construction certificate for 184 apartments and two shopfronts

PwC, the receivers and managers of Nera Developments, which owns the site and was controlled by Mr Merhi, listed the under-construction development in October and there were eight registered bidders.

Leading web site Urban Developer reported there were 45 bids for the property from residential and commercial developers with the final sale price of $11M considered a ‘good buy’.

An unnamed prominent western Sydney developer reportedly tipped out other bidders to acquire the mixed-use development.

The basement parking and first five levels of the tower have already been built.

Colliers’ Matthew Meynell, James Cowan and Jordan McConnell worked with Lincoln Blackledge of Stonebridge to sell the property.

“Demonstrating the value of works on site to date, plus the benefits of dealing with an arm’s length vendor, allowed us to bring major buying groups to the auction room that typically would not have pursued an opportunity in this precinct,” Mr Blackledge told media.

“Due to the low levels of completions throughout 2020 and 2021 and with the affordability crisis impacting freehold dwelling prices, it’s no surprise there was fierce bidding between competing parties for this prized asset,” Mr McConnell said.

Colliers agent James Cowan said it was the third commenced development site Colliers had marketed recently.

He said while it was a sign of the times it demonstrated that a good strategy and the right agents could deliver a premium result.