Deicorp Settle Landcom site in Castle Hill

Deicorp is set to proceed with its latest mixed use project in Sydney’s North West following the settlement of a 7,969sqm site adjacent to the Hills Showground metro station.

Deicorp unveiled its vision for the site in July with the submission of a planning application to the State Government in July 2021.

The project is proposed to comprise a six-level basement, with four residential towers above a new publicly accessible retail plaza & podium. The towers will provide 431 one-, two- and three-bedroom apartments and have a gross floor area of 51,064sqm, including 10,935sqm of non-residential use, including a proposed Woolworths Supermarket.

Deicorp acquired the site for $78.9m following an agreement with Landcom in 2019. Overall, Deicorp will invest $175 million to develop the project. The land acquisition price reflects $183,000 per proposed apartment.

The project is yet to be approved but is in accordance with the concept approval for the Hills Showground Station Precinct, which was approved by the NSW Minister for Planning and Public Spaces earlier this year. If approved, Deicorp plans to deliver the project in 3 stages with a total capital investment value of about $172 million.

The Hills Shire LEP generally requires larger apartment sizes and a high 25% proportion of 3 bedroom apartments, however the DeiCorp proposal provides a greater number of one and 2 bedroom apartments and just 10% of 3 bedroom apartments. The proposal argues that the LEP requirements create a mismatch between supply and demand and that the larger proportion of smaller apartments better meets the market requirements of housing diversity and housing choice.

Mirvac were previously identified as a preferred developer of the Showground station precinct but pulled out in 2018. It is understood the requirement of larger minimum sizes for apartments was among the reasons for Mirvac’s decision.

The NSW Government has since finalised a concept approval for the Hills Showground Station Precinct which is one of three development lots for a total of 13 buildings—ranging in height from three to 21 storeys—comprising 1620 new homes and 14,000sq m of retail and commercial space.

The northern boundary of the site is bounded by the Castle Hill Showground which is set to become a key civic and recreational space for local residents.

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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