CFMEU's Lidcombe site tipped to fetch more than $40 million
The CFMEU has put its office in Lidcombe up for sale, in a move that will likely transform the site into apartments as development gains pace in the western Sydney suburb.
The mixed-use site on more than 6000 square metres, at 6-8 and 10-12 Railway Street, is expected to fetch more than $40 million, following an expressions of interest campaign being conducted by Colliers International and Raine and Horne Commercial Parramatta.
It is understood the union wants to consolidate its operations in a CBD site, as well as to take advantage of Sydney’s insatiable demand for apartments.
But the new owner would have to wait several years in order to realise its development potential, said Jon Chomley, National Director, Capital Markets at Colliers International.
“They’re doing a leaseback for probably for two years, but that’ll give someone time to get the DA and get it all prepared,” he said.
The NSW branch of the CMFEU has been contacted for comment.
The CFMEU site in Lidcombe is expected to fetch more than $40 million. Photo: Supplied
Guillaume Volz, national director, development sites residential at Colliers International, said that the holding income generated by the site was likely to attract local developers in particular.
“Lidcombe has had limited development of apartments over the last five years so the market is keen for more opportunities, particularly where there is some level of holding income on the site,” he said.
Mr Chomley said that Lidcombe was increasingly popular with developers for its generous development controls and lack of density, particularly compared with nearby Homebush – a result of restricted supply in recent years.
Current zoning allows for developments up to 32 metres on the CFMEU site, which is within 200 metres of the Lidcombe railway station and town centre.
“They’re (developers) coming to Lidcombe because you can go to 32 metres high, so I think we’ll probably see some more developments, but it’s not as densely populated as Homebush. Being so close to Lidcombe railway station is also a huge drawcard,” Mr Chomley said.
A nearby site at 18-24 Railway Street, less than half the size at 2290 square metres, sold for $24 million last year.
Both sites have a floor space ratio of 1:5, Mr Chomley said.
