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Sell-off in the city sees Seven join the rush

SYDNEY residential and mixed-use developments worth more than $1 billion are being put up for sale, including the Seven Network's Epping site and John Beville's $800 million revamped Top Ryde City complex, which is expected to carry a price tag of about $250m writes Bridget Carter in the Australian of 18 February 2010.

Rebel Property Group managing director Allen Linz said he had been speaking to real estate agencies about selling the $450m residential development site at Epping, which was a joint venture with the Seven Network and was expected to fetch more than $50m.

Also coming to market in the next six weeks is the residential component of the failed $360m Chatswood Interchange project.

The site of the three residential towers at Chatswood comprising 509 apartments was initially expected to attract offers of about $75m, but the price was now more likely to be $50m-$60m due to the risks of building over a major railway line, according to sources.

Beville's Top Ryde City shopping centre reopened in November after a three-year redevelopment.

Beville Group faced difficulty signing retailers during the financial crisis.

Beville Group had $84m worth of mezzanine debt with Valad Capital Services. Last year, Valad had been actively seeking to withdraw from debt positions.

Jones Lang LaSalle retail head Simon Rooney is marketing a half stake in the project. But sources said Beville Group had been been looking to sell the entire development on a yield of about 7 per cent.

The Top Ryde City shopping centre's first stage involved 120 stores opening in November. The original centre on the corner of Blaxland Road and Devlin Street was demolished in 2007.

Top Ryde City opened in 1965 as one of the first enclosed shopping centres in Australia.

Stage two of the development is expected to open next month, and stage three in August, bringing the number of shops to 280. Long-term plans for the complex include a gym, bowling alley, cinema complex and 425 luxury apartments in five buildings. Justin Kuiters, in charge of the mall's development, said late last year there were initial plans to build 180 units, with contracts exchanged on 90. The residential component is estimated to be worth at least $300m.

Beville Group could not be reached for comment yesterday.

Meanwhile, a Network Seven spokesman said "as it stands" the network's Epping base was not for sale, but Mr Linz said the site's sale was being considered.

He dismissed claims that moves to sell the property followed unsuccessful attempts to find a joint venture partner for the 650-apartment residential development being undertaken by a consortium involving Network Seven and Mr Linz's Rebel Property Group.

Mr Linz had been forced to find alternative funding for another development in Bondi after one of his lenders, Lehman Brothers, collapsed, but Lehman had not been a lender for the Epping site, he said.

Network Seven would leave the property in May to relocate to its new Sydney base in Redfern.

"We are considering selling, there is no doubt about it and we had approaches last year," Mr Linz said, adding a formal decision had not been made.

Reports suggest Mr Linz embarked on a $90m deal in 2003 for the network's Adelaide and Sydney broadcast centres.

Of the Chatswood development, undertaken by CRI Australia subsidiary CRI Chatswood, Christopher Hill, of insolvency firm PPB, said the residential part would be taken to the market in the short term.

CRI Chatswood is in liquidation, and the podium is the only part of the development that has been built. CRI Australia and receivers are locked in a $30m legal dispute with Precision Group, which is responsible for the retail component of the project.

Speaking generally about the NSW residential market, Colliers International's state residential sales director, Murray Wood, said: "The timing is right, given the shortage of supply. There is pent-up demand and that will support projects. Equity will see this is a good time to get back up into residential."

Source: www.theaustralian.com.au/business/sell-off-in-the-city-sees-seven-join-the-rush/story-e6frg8zx-1225831552207