Harry Triguboff’s Meriton group plans 200 apartments on newly acquired Rosebery site and tips cash rate to fall to 2%

Harry Triguboff’s Meriton group has acquired a former industrial property in Rosebery in inner south-east Sydney with plans to build 200 apartments.

Meriton paid $21 million for the Rosebery site bringing the number of development sites acquired this year to six and the total amount spent on these sites to $200 million.

Triguboff is also tipping the cash rate to fall 125 basis points to 2%.

“They have to go down,” he says.

This year, Meriton has targeted development site acquistions within a 15 kilometre radius of the  Sydney CBD.

The six sites acquired this year have the potential for 2,000 new apartments worth $1.3 billion.

The biggest site acquired in 2012 is on Thomas Street in Chatswood on Sydney’s north shore, with approval for 547 apartments. Meriton paid $50 million for the Thomas Street car park with plans for two towers of 29 stories each, one of which will be retained by Meriton as serviced apartments – a growing part of the Meriton business.

In July, Meriton spent $48.5 million to buy the controversial Lewisham Estates development site which has amended potential for between 377 and 430 units.

Meriton has also acquired sites in Talavera Road in North Ryde (423 units), South Dowling Street, Zetland (400 units) and McEvoy Street. Waterloo (200 units)

Commenting on the Rosebery acquisition, Triguboff told The Australian it was the only area near the city that can take a large number of apartments.

"In Bondi or North Sydney, you can't get a big site - you are looking at only 100 or even 80 apartments."

Meriton already has a presence in Rosebery with its Valentino Place development on the corner of Epsom Rd and Rothschild Avenue featuring 265 apartments, completed in 2009. A one-bedroom apartment in Valentino Place with city views is available for rent at $510 per week.

Meriton is also reportedly looking at acquiring Brookfield's Sydney CBD site on the corner of Pitt Street and Bathurst Street.

Brookfield paid around $150m for the site four years ago, which has approval for a 65 storey apartment featuring 400 apartments over 65 storeys.

No deal on this acquisition has yet been reached.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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