Parramatta skyline set for shake-up with $1.5bn, 1000-apartment rental tower

A stalled Parramatta development site has been resurrected with ambitious plans for 1000 units in what could become one of Australia's tallest residential towers at $1.5bn.

Conquest is proposing to build a 250m tower on the Parramatta site.

Private equity real estate company Conquest has proposed one of the country’s largest-ever build-to-rent towers with a $1.5bn scheme in the western Sydney hub of Parramatta.

The move would not only reshape the skyline, as it would rise about 250m and house up to 1000 apartments, but it would also resurrect a site that was once part of the Dyldam empire.

That developer acquired the Thomson Ford dealership site at 87 Church Street and 6 Great Western Highway in Parramatta in 2016 from tycoon Nick Politis for about $70m. But its plans for a large-scale mixed-use precinct stalled.

The project has preliminary approval but requires amendments to existing planning controls to build higher than the existing 180m limit.

Conquest has an option on the site and is billing the project as a bold statement on the future of urban living as part of the push to address the ongoing housing crisis.

Previous developers had proposed a 62-storey tower.

The development, under Conquest’s own brand, ARTE, is envisioned as a mixed-use skyscraper with a mix of studio, one, two, and three-bedroom apartments. Ten per cent of the residential space would be affordable housing for 15 years, managed by a community housing provider.

“This is a landmark project. Now that the planning departments have allowed us to go up, we’re looking to build one of the tallest towers in the country and create a landmark piece,” Conquest chief executive Michael Akkawi said.

He said the firm’s integrated structure allowed it to “still make things stack up” where others “struggle”, particularly in the BTR sector.

“We’re really a long-term player in the BTR sector, and we believe in Sydney and the strength of the BTR market as the population increases and migration continues,” he said.

Mr Akkawi said Conquest took a conservative, well-structured approach to funding.

“We combine private equity, institutional capital and senior banking lines to fully secure each project before we begin,” he said.

“Our strong balance sheet, sales, precommitments, and partnerships with tier-one lenders allow us to deliver a $6bn pipeline without reliance on speculative funding or future capital events.”

A podium of up to five levels would contain offices and retail space. Amenities would include a gym, pools, sauna, shared workspace, yoga room, wellness facilities, and a cinema room.

The tower is projected to reach about 78 storeys, which would dwarf rival build-to-rent projects in Parramatta.

The area had been a magnet for the new style of buildings but they are tough to build amid rising costs.

Private developer Holdmark this year applied to convert one scheme in Valentine Avenue from a build-to-rent approval to a mix of co-living and build-to-sell. It is instead pursuing a 600-apartment build-to-sell development on the southern end of the site. It will also convert an office block into a 674-bed co-living project on part of the site.

Another private developer, Urban Property Group, is developing a $600m mixed-use build-to-rent-rent project at 2 Fitzwilliam Street. Sitting opposite Parramatta Station and the bus interchange, it would have two towers of 40 and 48 storeys above a podium and contain 703 apartments.

Developer Tim Gurner and Qualitas, via their GQ Multifamily Build-to-Rent platform, have also proposed a $450m precinct in Parramatta. Specialist group Novus, backed by M&G Real Estate, is ahead of the field and is building the $250m Novus on Harris project.

Conquest wants to open more projects under its ARTE brand and in October unveiled a deal in which it snapped up the former Cyprus Community Club site at 58-76 Stanmore Road for $55m and lodged plans for a $900m retail and residential development.

Conquest in May bought a high-profile site in Sydney’s Eastlakes that was owned by the Crown Group. It forked out $75m and is planning 800 units and a Queensbridge-branded retail centre.

On Sydney’s north shore, Conquest also bought the Quadrangle Shopping Centre in Castlecrag for $68.8m. It has a $250m scheme in which the site will be developed as the Queensbridge lifestyle and ­retail precinct.

Conquest said it would run a design competition, working with top architects to ensure the building is a landmark.

Originally published as Parramatta skyline set for shake-up with $1.5bn, 1000-apartment rental tower