Sydney Developer Merhis Corp’s partially built 184-apartment tower at Blacktown is on the block after the developer went into liquidation and its director Mark Merhi left the country earlier this year.
PwC, the receivers and managers of Nera Developments, which owns the site and was controlled by Merhi, has listed the Blacktown CBD property with development application approval and a six-stage construction certificate approval.
The 20-storey mixed-use development, Inspire, was under construction when the developer and related entities went into liquidation owing the Australian Taxation Office at least $6 million.
Colliers and Stonebridge have been engaged to market the 1996sq m development site with significant works including the basement car parking and the first five levels of the structure completed.
Colliers agent Matthew Meynell said construction works had been checked and certified, and that the property provided an opportunity for potential buyers to mobilise quickly and recommence construction.
“This opportunity provides an incoming buyer the opportunity to purchase a DA and CC approved development site with all authority contributions paid,” Meynell said.
“This offers immediate scalability.”
Colliers’ James Cowan said the project could address apartment stock undersupply in greater Sydney.
“[Undersupply] is a concern due to the affordability crisis that freehold dwelling prices have created,” Cowan said.
“We expect developers will take this into consideration when bidding on this site.”
The property will be sold via public auction in November, and is expected to appeal to developers who could bypass the riskiest aspect of the mixed-use project with the basement levels already complete.
Merhis Corp had a long string of run-ins with liquidators, and New South Wales Building Commissioner David Chandler who labelled a 16-storey tower at Auburn “an abomination”.
The developer had been unable to borrow money to rectify defects on financier Wingate’s Parramatta project.
