Central Element forks out $51m for Bondi development site

Sydney developer Central Element, which is led by a trio of property professionals including McGrath (ASX: MEA) director Shane Smollen, has taken its interests in the eastern suburbs to a new high after snaring an amalgamated site overlooking Bondi Beach for $51 million.

The deal, which is understood to be a record for the suburb, sets up the diversified property group to deliver a boutique apartment project that will deliver a suite of ‘ultra-premium’ apartments priced from $20 million each.

The acquisition comes on the heels of Central Element gaining approval last week for a small-scale luxury project at Coogee that will include the restoration of the historic Ballamac House.

Central Element, which is led by Smollen and father-and-son team Wayne and Nathan Chivas, plans to lodge a development application for the 2,000sqm Bondi site by the end of this year.

“Our latest acquisition marks an important milestone for CE as we enter the tightly held world-famous location of Bondi Beach,” says Nathan Chivas, the managing director of Central Element.

“Among the suburb’s bustling development activity, none rival the unique attributes of this parcel of land.”

Chivas says the price paid by Central Element reflects the elevated position and ‘generous frontages’ of the site that will underpin the company’s proposal to target the ultra-premium end of the market.

The Bondi sale, negotiated by Ric Serrao and Alex Lyons from Raine & Horne Double Bay/Bondi Beach, is among the richest residential deals for the suburb, coming on the heels of a home selling in nearby Tamarama for $45 million.

“The Bondi Beach market is one of the most exciting in Australia at the moment, attracting affluent buyers from lucrative industries such as tech, fashion and finance,” Lyons says.

“We’re seeing apartments commanding more than $100,000 per square metre, with the recent sale of Notts Avenue to Andrew Roberts, former managing director of Multiplex, achieving in excess of $125,000 per square metre.”

Lyons says demand for houses is just as strong, following the $45 million sale of 31 Gaerloch Avenue in Tamarama and the $22.5 million deal for 12 Bronte Marine Drive in Bronte.

The Bondi property, an amalgamation of six properties, is located at 20-22 Sandridge Street and 21 Wilga Street.

Central Element, which expects to begin construction of the Bondi project in 2025-26, says apartments in the boutique project will offer expansive outdoor living, swimming pools, secure car parking and views across the beach to Ben Buckler headland, with each residence having direct access to the Bondi-to-Bronte coastal walk.

Central Element boasts a multibillion-dollar portfolio of residential and mixed-use projects, including a joint venture with MaxCap Group to redevelop the Hyde Park Inn in Sydney’s CBD into 42 luxury apartments.

The company, which also gained approval last year for a $150 million mixed-use luxury apartment development joint venture in Chatswood, has a track record of delivering a total of 500 apartments across its home market of Sydney.