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Sydney-based developer Sammut Group has snapped up a beachfront apartment block in Cronulla for $38 million, beefing up its growing portfolio in the Sutherland Shire.
Sammut Group chief operating officer Julian Sammut said the site would be developed into a mixed-used complex, featuring retail and hospitality amenities on the ground floor and 25 two- and three-bedroom luxury apartments across nine storeys.
The Cronulla site is an “exceptional location”, across the road from the beach and with parks on two sides.
“We’re expecting the end value of the development will be greater than $100 million once completed,” he said.
“It’s an exceptional location, and we’re hoping to lodge the development application in the next four weeks.” Sammut Group will develop the site, and it will be financed by Alceon Group, which also backed Sammut’s Gold Coast development and two other Cronulla projects.
The property at 67 Gerrale Street consisted of 18 apartments on a 1327sq m block and was sold in one line in a strata amalgamation for $9400 per sq m.
Knight Frank agent Anthony Pirrottina, who negotiated the transaction with colleague Demi Carigliano, said the deal was the highest yet for Cronulla and the Sutherland Shire.
“It’s also one of the highest sale rates for a development site this year outside of the eastern suburbs,” he said.
“This site is arguably the best development site in Cronulla, being directly across the road from Cronulla Beach and overlooking parks on two sides.
“It was an exceptionally rare opportunity to acquire a residential apartment block with immense development potential in one of Sydney’s most tightlyheld beachside precincts.”
The property, located just 110 metres from Cronulla Beach and 20 metres from the Cronulla train station, has three street frontages – to Gerrale Street, Beach Park Avenue and Surf Lane – totalling 115 metres.
Mr Carigliano said there had been strong demand for development sites this year, particularly those with high-end residential development potential.
“Cronulla is the premier postcode of the Sutherland Shire, with growing values for off-the-plan apartment sales, and the prime location of this particular site will ensure strong buyer demand for any future residential development,” he said.
Mr Sammut said demand for luxury apartments had been surging in the past two years.
“I think the pandemic has shifted people’s mindset and priorities, and they now want to live close to the beach and are looking for luxury and liveable apartments,” he said.
“This development is quite different from our previous projects because this is going to be primarily a luxury, boutique block offering oversized apartments along the main strip of Cronulla beach.
“Our other projects are also luxurious, although they are in a denser block or not located along the main strip.”