Newcastle site sold to Sydney developer Iris Group

Newcastle site sold to Sydney developer Iris Group
Newcastle site sold to Sydney developer Iris Group

Prominent Sydney hotel owner and developer, Iris Group, has paid $39 million for a huge Newcastle site.

It comes with approval for a 55,000 square metre residential, retail and commercial development.

Savills, the selling agent agent, suggests it is one of the most significant property transactions in Newcastle in several years.

It was sold by GPT and Urban Growth NSW.

The so-called East End (Newcastle CBD) Portfolio covers four city blocks and 1.66 hectares of premium land, the majority bordered by Hunter, Newcomen, King and Perkins streets.

The property was recently DA approved by the Joint Regional Planning Panel (JRPP) for 47,800 square metres of residential, 4900 square metres of retail, and 2700 square metres of commercial space.

According to Savills Director Residential Site Sales, Stuart Cox, who managed the marketing campaign with Neil Cooke and Ben Azar, the site offered a vertical village of "the like the City had never seen before."

Iris Group CEO, Sam Arnaout said he was both excited and honoured to have won the opportunity to make a significant contribution to the liveability of the City of Newcastle.

He said while the property’s location and development approval were the most important factors, Newcastle’s surging population growth and concomitant demand for apartments along with the NSW Government’s $500 million commitment to revitalise the Newcastle City Centre were key additional considerations.

The portfolio’s existing improvements include a mix of 25 commercial and retail use buildings with a gross floor area of approximately 23,500 square metres.

They contain 81 tenancies, of which 25 are currently vacant, returning net annual income of $1.15 million.

 

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Savills Newcastle

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