Developer Coronation Property’s transformation of Liverpool’s historic riverfront The Paper Mill site into a residential haven is proving a rapid-fire winner for investors.
Coronation, headed by Joe Nahas, has sold 80 per cent of the 883-apartments in the project, due for completion late-2020.
Mr Nahas yesterday said the first investor-owned apartments, in the project’s initial stage, had been quick to draw tenants.
“There was almost a clamour for them, with people knocking on the door before the apartments had settled.
“The investors should be pretty happy – rental yields in excess of 5 per cent have been achieved.
“For example, a one-bedroom apartment sold at launch for $383,000 has been let at $410 a week – or a gross 5.57 per cent yield.
“A tenant is paying $510 a week for a two-bedder, which means the owner is grossing 5.52 per cent and is understandably delighted.”
Mr Nahas said the yields, which would be hard to match in the areas surrounding the Sydney CBD, underpinned apartment values at The Paper Mill.
“That’s not just the case for investors but also for owner-occupiers, who make up more than 80 per cent of our buyers.”
Mr Nahas said the buyer enthusiasm for The Paper Mill was an endorsement of Coronation’s move to provide Liverpool with a new approach to urban life.
“Our investor clients recognise The Paper Mill offers something completely fresh in terms of Liverpool living options.
“Their view obviously is shared by the people who want to rent apartments, and they range from young professionals to hospital staff.”
Mr Nahas said the demand from renters, and the returns being achieved, showed Coronation had ‘hit the mark’ by master-planning The Paper Mill and using top design and landscaping talent.
“We’ve set out to provide Liverpool with a gem that reinvents life fronting the Georges River and at the same time preserves the historical integrity of the site.
“That we’ve already sold more than 700 apartments shows Liverpool is well and truly ready for new lifestyle options.”
Development of the 2.3-hectare site includes buildings of from six to 24 levels and they are to be complemented by an open-plan retail and dining venue in the heritage-listed former paper-mill building.
Mr Nahas said the bulk of the remaining stock at The Paper Mill was in the final building, The Foundry, which will have 198 apartments, of which 58 have sold.
Mr Nahas said Coronation was eyeing further opportunities in Liverpool.
“There’s enormous momentum building in the area on the back of Liverpool’s proximity to the planned new western Sydney airport at Badgerys Creek.”
The federal and NSW governments have just announced a City deal for a co-ordinated plan to deliver long-term prosperity to western Sydney.
The City deal, which will deliver a north-south rail link from St Marys to an aerotropolis surrounding the planned Western Sydney Airport at Badgerys Creek, will include an investment attraction office at Liverpool.
A report by pwc has identified Liverpool as the gateway to the airport.
The report says Liverpool Council should ensure Liverpool is seen as CBD of the greater aerotropolis, where airport-related businesses set up their Western Sydney offices/headquarters.
The pwc report also says Liverpool should be viewed as the place to stay for incoming tourists and business people.