Receiver moves to list ex-Coronation sites in Parramatta

Two development sites once slated for a luxury residential project at up to 45 levels are for sale again after the death of the proponent.

263-265 Church Street, Parramatta

Two prime development properties in the heart of Parramatta are back on the market after a planned project, originally involving major developer Coronation Property, was shelved after the death of its proponent.

The two properties, at 295 Church St – the site of Crown Hotel – and 263-265 Church St, were bought by Coronation for a reported $50m in 2017, however the developer, headed by managing director Joe Nahas, said it had not been involved since late 2018.

At that time, US-based Mark Camillo’s Camillo Properties took ownership of the projects.

However, Mark Camillo died in 2021, and the Camillo family recently put the development vehicle, Nahcam Pty Ltd, into liquidation.

Coronation stressed it has not been involved with the proposed project in any way since the Camillo interests took over sole ownership.

“In late-2018, it was agreed that the Camillos would take sole economic ownership of the project companies,’’ a Coronation spokeswoman said.

The two sites are now for sale, with expressions of interest closing on March 2.

“The Camillos funded the payout of the property acquisition loans and took mortgages and other security over the project companies and the Church St properties.

“All financial and non-financial requirements of Coronation and Mr Joe Nahas were fully satisfied and there is no dispute in this regard.

“Sadly, in 2021 Mr Camillo passed away. Ultimately, the Camillos stated they would not exercise their $1 call option (which gave them the right to acquire all the shares in the project companies) but would instead endeavour to appoint a receiver under their mortgages to sell the Church St properties.

“We do maintain the belief that putting the companies into administration was unwarranted as they could simply have exercised their call option to take the shares in the project companies for $1 each. Nevertheless, this was of no concern to Coronation.’’

Nahcam was placed in liquidation in September, with Irene Camillo registering a debt against the company of more than $44.7m.

The two sites are now for sale, with expressions of interest closing on March 2.

An information memorandum for the 295 Church St property says it represents “a scarce opportunity to acquire one of the last remaining consolidated high rise residential development opportunities with dominant Eat Street frontage within the Parramatta Riverbank Precinct”.

“The proposed sale includes land, improvements, gaming permits, gaming licences, and liquor licences.

“Significant government infrastructure investment, combined with major commercial development activity led by institutional fund managers is increasing Parramatta’s commercial and lifestyle profile at a national scale.

“For developers, there is opportunity to create up-market high-rise residences of a comparative boutique scale in a premier location, with lifestyle and amenity at the literal doorstep, while investors can increase the income of this under rented building, and owner occupiers can capitalise on the short weighted average lease expiry and expansion potential to customise a freestanding branded venue.”

The site at 263-265 Church Street, Parramatta

The site area is 1075sq m with a net income currently of $924,000, mainly from the Crown Hotel.

The 263-265 Church St property has a total site area of 514sq m with a net lettable area of 1101sq m.

“263-265 Church Street, Parramatta is an unrenovated local heritage warehouse building (1876) with a detached single level storage area at the rear,’’ the EOI documents say.

“The site is seamlessly connected to rich lifestyle and transport options; located at the heart of retail, cafes, bars, fine dining, gyms, health and childcare facilities.’’

At the time of the purchase in 2017, the plan was to develop the site into a luxurious complex with gateway approval in place for a development featuring 45 residential levels and 1100sq m of retail and basement parking.

Coronation said at the time it would also look at restoring the three-level heritage building at 263 Church St, with ground floor retail and an office space on the higher levels.

Coronation bought the site from Iris Capital.

The Coronation spokeswoman said in a statement the company was performing well.

“Coronation has experienced robust growth and continues to operate in a very financially healthy and stable manner,’’ she said.

“In January 2023, Coronation settled on the acquisition of a development site in Erskineville for $315m, the purchase of which was funded with no external financing.

“The group has very low gearing across the portfolio and are very well capitalised for growth. We are actively searching for new acquisition opportunities.’’

Originally published as Receiver moves to list ex-Coronation sites in Parramatta