Legacy Property follows the money to Western Sydney

Nov 1, 2016

Thursday 6th October 2016 by Robert Harley – The Australian Financial Review

Sydney property developer Legacy Property has followed the strong investment in Western Sydney, buying a site for 500 homes at Caddens, east of Penrith.

Legacy has paid $67.625 million for the 28.5 ha site on Caddens Road and O’Connell Street just off the M4 Motorway.

The chief executive of Legacy Property, Matthew Hyder, said the existing, and future, infrastructure along with proximity to amenity, transport and services made the Caddens site an outstanding residential development opportunity.

“We believe areas in the Greater West, located in the Parramatta to Penrith corridor, have a high level of growth potential,” he said.

The site, to be called Caddens Hill, is close to a Western Sydney University campus, the Nepean Health Precinct, the Penrith City Centre and the future work generators of the Western Sydney Employment Lands and the Western Sydney Airport.

Mr Hyder said the federal government had a focus on Sydney’s west for investment in infrastructure, jobs and housing growth.

“There are a tremendous amount of future employment opportunities in Western Sydney which will eventually allow local residents to live much closer to where they work,” he said.

Legacy has developed apartment towers like Capitol at Bondi Junction and Montrose at North Sydney as well as housing communities like Greenway at Marsden Park. A year ago, the group was selling sites as the profits on sale exceeded those on development.

Mr Hyder acknowledged that the financing for housing development had become challenging.

Legacy has sourced its senior debt for Caddens Hill not from the big four banks but through commercial real estate debt specialists MaxCap and Fortress.

Mr Hyder said Legacy Property’s ability to complete the transaction, at a time of limited traditional first mortgage capital, was “a testament” to the group’s track record, capability and strong relationships with a range of financial institutions,

“Our senior debt providers, MaxCap and Fortress, both recognised the strength of Caddens Hill and its location,” he said.

Caddens Hill, which will have views to the Blue Mountains, will have lots ranging in size from 300-600 square meters to “capture a broad spectrum of the market’ from first home buyers to upgraders and investors.

Prices have not been disclosed. The first sales release is scheduled for mid October.