Sydney-based property developer Desane has been greenlit by Inner West Council for a 46 apartment development in Sydney’s fringe suburb Leichhardt.
ASX-listed Desane Group Holdings spent $21 million to purchase the 2,782sq m industrial Sydney site at 159 Allen Street.
The site sits five-kilometres from Sydney’s CBD and had zoning approval for 50 apartments under the Allen Street Leichhardt Master Plan.
The project’s design, by Group GSA, incorporates a four-storey apartment block and a 5-storey apartment block.
Desane head of property Rick Montrone said the group is currently undertaking due diligence for around $100 million of investment property acquisitions.
“The planning approval of the project will allow Desane to move forward with its program of increasing its income value‐add investment and development property portfolio,” he said.
The Allen Street Leichhardt project is expected to have an end value of more than $50 million on completion.
“The Sydney city fringe is an area that is attractive to people who are socially mobile and also want lifestyle choice,” Montrone said.
Last year, Desane lost its legal battle against the NSW government’s compulsory acquisition of its 68-72 Lilyfield Road Rozelle site.
The group had maintained that its Rozelle site could yield a $100 million 200 apartment project on the 5,200sq m parcel of land.
After losing in the Court of Appeal, Desane entered into a contract with the NSW Roads and Maritime Services for $78 million on the government acquired site.
Earlier this year Desane lodged plans for the development of a 273-apartment mixed-use project at 91 Thornton Drive in Penrith.