Former Bonds HQ set to be transformed into major mixed-use development

15 July 2022

One of Western Sydney’s largest mixed-use development sites that could accommodate up to 1,500 residential dwellings has come to market.

Formerly the headquarters of Bonds Industries, the 79,964sqm site at 190-220 Dunmore Street in Pendle Hill is zoned part R4 High Density Residential, part B2 Local Centre and part RE1 Public Recreation, with height limits ranging from 12.5 metres up to 39 metres across the property.

The Colliers team of Frank Oliveri and Guillaume Volz have the exclusive listing, with price expectations of $130 million.

“Very rarely do you come across an eight hectare, R4-high density residential development site in a fully built-up area within walking distance to two railway stations,” Mr Oliveri said. “The site will accommodate approximately 1,500 residential units and is potentially the largest unit development site to come up in the western Sydney market for many years.”

“Traditionally there has existed a 10 to 15 per cent gap between new build multi-units and established units. However, as owner-occupiers have become the predominant buyer, this gap has narrowed to parity in the last year,” Mr Volz added.

“We believe that record low commencements will be felt in the market and as new generation off-the-plan properties become available and buyers value the benefits they offer, particularly in master planned communities, developers will be able to achieve higher pricing from new developments.”

A local heritage item, current plans would allow for adaptive reuse of heritage buildings for up to 6,000sqm GFA of non-residential uses such as retail, local services, medical uses, supermarket, community and indoor recreational, an important aspect to ensure appreciation of the site’s unique heritage qualities.

As part of the plans, approximately 25,000sqm of space can be used on a public plaza and parks, and 8,000sqm on common space.

The site benefits from excellent future prospects due to its prominent location close to major employment centres like the Parramatta CBD and the Westmead Health and Education precinct. It is situated within Cumberland City Council and is just 850m from Pendle Hill Station and 1.5km from Wentworthville Station. It is also situated on a high point in the local topography and benefits from district views.

“With changes in development controls across the Western Sydney market – this site is between three and 12 storeys, making it much easier to develop than many others in the market,” Mr Oliveri said. “As housing affordability is paramount, this development is expected to have strong demand from first-home buyers and those who want an affordable unit close to rail, shopping and within proximity of the Parramatta CBD.”

“There are cyclical and structural changes that are occurring in Sydney which will support the next cycle of BTS apartment projects as well as the emergence of the BTR sector, including the acceptance of family living in apartments, increased detached dwelling affordability constraints, rapidly rising rents and the return of overseas migration as international travel continues to improve in the post-Covid world,” Mr Volz said.

“The availability of limited development sites in inner Sydney has also seen BTR developers appreciate the value offered by Western Sydney, particularly in land values. Coupled with 15 per cent growth in Sydney wide rents in the last 12 months, and further increases to come over the next 12 to 18 months as migration levels improve and low levels of new supply impact rental options, the metrics are now favourable to support the BTR sector in Sydney.”

Increased private investment and other public infrastructure investments are set to benefit the region immensely. Significant transport infrastructure investment over the coming years, the largest being the Westmead Metro Station, will change accessibility into the region.

190-220 Dunmore Street, Pendle Hill is for sale via international expressions of interest closing Wednesday, 22nd June 2022 at 3pm (AEST).