Liquidators of Starin offer for sale market is a 2,478sqm* development site at 388-392 Lane Cove Road, Macquarie Park with Hotel/ Serviced Apartments DA approval for 158 apartments, through Leon Alaban, Nick Lower, Andy Hu and Tim Grosmann of Savills Australia on behalf of KordaMentha in their capacity as Liquidators of Starin.

According to Savills Australia research, Macquarie Park is set to become the fourth largest CBD in Australia by 2030 – doubling its current working population and expanding its commercial space up to 2 million square metres.As the population of Macquarie Park and the greater North Ryde catchment area continues to boom, growing at twice the rate of Metropolitan Sydney, investor appetite for the region shows no signs of slowing.One of Australia’s most tightly held markets, there has been a distinct lack of stock entering the market in the last three years, creating pent-up demand for assets and fuelling yield compression across multiple asset classes. With the continued population and employment growth and improving transport connectivity, corporate demand is fuelling growth in the hotel & serviced apartments markets in Macquarie Park.According to Leon Alaban, National Director – Hotels at Savills Australia, both domestic and offshore investors continue to show confidence in Macquarie Park, as evidenced by the sale of the Quest Serviced Apartments in March 2020 on a yield of mid five per cent negotiated off market by Savills Australia.

“While the Australian hotels market has been impacted drastically by the COVID-19 pandemic, destinations like Macquarie Park – who are not reliant on international tourism, and instead fuelled primarily by interstate/intrastate corporate guests – are expected to lead market recovery.

“We anticipate the Sydney hotels market to be operating at pre-COVID levels by 2023/2024, with hotel development sites perfectly placed to capitalise on the post-COVID market recovery” he said.

Furthermore, the population of Macquarie Park is expected to increase a staggering 211 per cent by 2036, fuelled by the government-designated Macquarie Park Urban Activation Precincts and high-rise projects – including the $750 million Macquarie Exchange business precinct.

Significant government investment in infrastructure, particularly the recently completed Sydney Metro Northwest Line, has increased the connectivity of Macquarie Park and boosted interest in the region from both residential and office tenants.

According to Nick Lower, Director, Property Insolvency & Turnaround Services at Savills Australia, an office vacancy rate at a record low of 4.4% in January 2020 demonstrates demand in the region, as office rents in the region continue to grow year-on-year.

“Many people do not know that Macquarie Park is the second largest office region in NSW (per square metreage*) and the largest of the North Shore regions, surpassing North Sydney, Chatswood and St Leonards.

“Macquarie Park is home to numerous national and international major occupiers and there are already numerous large-scale developments approved, including

• 45 Waterloo Rd (25,000 sqm NLA
• 95 Waterloo Rd (15,000 sqm NLA))
• 11 Talavera Rd (32,000 sqm NLA)
• 8-12 University Ave (50,000 sqm NLA)
• 396 Lane Cove Rd (74,000 sqm NLA)

The latest site to hit the market is a 2,478sqm* development site at 388-392 Lane Cove Road, Macquarie Park with Hotel/ Serviced Apartments DA approval for 158 apartments, through Leon Alaban, Nick Lower, Andy Hu and Tim Grosmann of Savills Australia on behalf of KordaMentha in their capacity as Liquidators of Starin.

The DA also includes capacity for a café on the ground floor, conference & meeting rooms, gym and pool, applicable BOH areas and a three level basement comprising circa 110 bays. The excavation for the basement is already complete.

Mr Alaban said starting in the early 90’s, the Macquarie Park area was established as a business precinct attracting predominantly corporate demand with minimal leisure.

“Accommodation product across Macquarie Park and surrounds is varied and comprises of traditional hotels, serviced apartments, motels and guest homes”.

According to Rahul Goyal, Partner at KordaMentha, suburban hotels and serviced apartments will lead market recovery in the accommodation sector.

“Destinations like Macquarie Park, who are underpinned primarily by corporate interstate and intrastate travel, will experience a rapid recovery as our state borders begin to reopen. Hotel development sites are perfectly placed to capitalise on the post-COVID 19 hotel market recovery.”

There are two train stations (Macquarie Park & Macquarie University Stations) and Macquarie Park Station will be the direct beneficiary of the $8.3bn Sydney Metro North West project, linking to the $12.5bn Sydney Metro City and South West project.

Mr Lower said Macquarie University has in excess of 40,000 students on its 126 hectare campus which also includes an on-campus hospital and a recent multi-billion dollar investment into facilities and infrastructure.

“Even through Covid, Macquarie University has been able to cater to its students’ needs whilst maintaining safe social distancing, and the Uni continues to attract new students with online learning. As restrictions continue to ease throughout NSW, it is expected that enrolment for 2021 classes will remain strong.

“Although the COVID-19 pandemic has lowered investment volumes in recent months, assets in superior locations underpinned by strong economic growth and government support continue to generate strong interest from domestic and offshore investors” said Mr Lower.

International Expressions of Interest (EOI) for 388-392 Lane Cove Road, Macquarie Park closes 5 November 2020 through Savills Australia.

Click here to view the IM and for more information.