This block should be housing. Instead, it’s a car yard

This lot is supposed to be high-rise housing. Instead, it’s a car yard.

Neighbours have watched over the past decade as houses and units on their Homebush block were bought and demolished by a developer, but they did not expect to see the land turned into a holding yard for repaired cars.

Crash Claim’s Loftus Crescent car park. Credit: Sam Mooy

Strathfield Council says the “works and activities” of the site’s current tenant business Crash Claim were “unauthorised” when it undertook works to turn the block into an extra holding yard for cars.

Those works included bringing machinery on site to resurface the land and clear dumped waste.

The land, a short walk from Homebush railway station, is within the state government’s new transport-oriented development zone, making the path to build high-density buildings easier for the property owner, developer Charlie Demian.

An artist’s impression of a proposed residential development at Loftus Crescent, Homebush.Credit:

Demian’s attempts to develop the site have been refused by local and state planning panels. His most recent application was put on ice when the Homebush transport-oriented development zone was announced, allowing for taller buildings in the area.

After sitting empty for years, in December 2024, Nick Karagiannis’ Crash Claim business began clearing the block and moving cars in.

Neighbours were confused. They say they were never notified of any clearing works, or that a business was about to set up shop.

Nearby residents who spoke to the Herald on the condition of anonymity due to fear of retribution said they expected new apartments to be built when the developer started knocking down homes.

A decade later they have been left with an urban heat island, described by one neighbour as an “eyesore”.

An aerial view of the land cleared in Homebush.Credit: Google Maps

He claimed they can no longer open their windows on hot days because of the heat reflecting off the concrete and cars. Another said he feels that this pocket of Sydney has slipped into “urban decay”.

“It’s shovel-ready and there’s meant to be a housing shortage … there’s been no progress here,” the neighbour said.

Commercial use of the land is allowed under its current zoning. A DA was submitted through the planning portal by Developable Town Planning on Wednesday, after this masthead contacted the council with detailed questions.

Crash Claim’s co-founder Karagiannis, dubbed by a local podcaster as “the lion from Homebush”, was well known in the community as a car salesman for Sutton Motor Group. The businessman’s website promotes a bravery award he won after rescuing a woman from a house fire in 2014.

His career at Suttons ended when he was arrested by NSW Police after a three-year scheme came to light. Karagiannis had defrauded his employer out of nearly half a million dollars.

He pleaded guilty to dishonestly causing financial disadvantage by deception to the tune of $475,675 and was sentenced in February to one year and 10 months’ imprisonment to be served in the community.

In response to questions, Crash Claim’s head of strategy and compliance, Loucas Pilli, said Karagiannis was “not involved” with the lease or compliance aspects of the company’s operations. The company leases several sites to use as private car parks, he said.

Pilli said the business has received no formal complaints from neighbours, and has made efforts to improve the area by removing dumped waste. He said the business is working to bring the site into “full regulatory alignment”.

He said the site is being used in accordance with its commercial zoning, and that the short-term tenancy would not stand in the way of further development plans.

Nick Karagiannis smiles after receiving his bravery award in 2018.Credit: LinkedIn

“Prior to our involvement, the Subway Lane site had been the subject of illegal dumping and neglect. Since taking occupancy, Crash Claim has significantly improved the condition of the site, making it clean, secure and visually presentable, thereby contributing positively to local amenity and safety,” he said.

Strathfield Council made a site visit on Wednesday and is taking “appropriate action”, a council spokesperson said.

A housing development on the site could still be far away.

In 2023, a state-significant development application was submitted by Pacific Community Housing for a mixed-use build-to-rent development. That application was put on ice when the Homebush transport-oriented development rezoning was announced, allowing greater building heights around Homebush station.

A Strathfield Council briefing document said that proposal was similar to those previously refused.

A thorn in Demian’s side was that not everyone living on the block agreed to sell up – leaving two small brick unit blocks still standing.

The planner working on behalf of Demian is Matthew Daniel, a Liberal Party powerbroker who previously held positions in the state’s Planning Department. He was named as the planner working on behalf of ex-MP John Sidoti in an Independent Commission Against Corruption investigation. No corruption findings have ever been made against him.

Daniel said he intends to file another application soon to build housing on the site, which would include affordable housing.

He said his client, Demian, has no personal relationship with Karagiannis and was unaware that Crash Claim’s activity in clearing the site was considered unauthorised by council.

“My client was just trying to get some income on the site,” he said.

Demian was contacted for comment but did not respond.

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