HyeCorp Sells out of Macquarie Park Resi
Sydney developer Hyecorp has decided to end its pursuit of a Macquarie Park residential development after a long fought battle with a strata community with a sale of the project to Sundale for $40m.
Hyecorp, founded by well-known Armenian-Australian family the Abolakians in the 1990s had acquired 3 units in the two older-style sister blocks in late 2014 and 2015 just before new strata laws were introduced by the NSW government in late 2016 allowing 75 per cent of a strata to force the collective sale of property.
The majority of the owners in the 2 buildings approved a CBRE-led sales campaign which Hyecorp participated in but failed to win. British based student accommodation giant GSA, which had offered about $50 million for the majority of the units but Hyecorp dug its heels in to oppose the sale to the winning bidder.
The two strata corps spent close to $1 million in legal fees preparing the case for court as the new laws, under the Strata Schemes Development Act, were to provide safeguards against disagreeing parties.
GSA ultimately let go of the options to purchase the units on the expiry date of November 14, as it was unable to procure the entire two blocks. It is understood Hyecorp wanted about $4 million for each unit, over three times the amount offered for the other units.
The remaining owners also abandoned a lawsuit with Hyecorp as legal costs started to take a toll on the owners, some of them pensioners.
Hyecorp ultimately prepared a development scheme for the site and marketed apartments, however as the market deteriorated and sales were slowing, they cut a deal with Sundale to acquire the blocks for $40m.