Prominent Sydney developers Michael Teplitsky and Felix Milgrom have sold a residential development site in the city’s inner west at a 25 per cent discount to its original asking price, after it was acquired for $45 million by Joe Nahas’s Coronation Property Group.
According to Mr Nahas, Mr Teplitsky and Mr Milgrom originally wanted as much as $60 million for the 1.62ha site at 149-163 Milton Street in Ashbury, which has been on the market since July 2020.
Mr Teplitsky and Mr Milgrom, through Ashbury FMBM, paid $30.888 million in 2014 for the Ashbury site.
An artist impression of the Ashbury apartments and townhouses to be built by Coronation Property.
The former industrial site and an adjoining 1.49-hectare site at 165 Milton Street, owned by Coronation Property since 2015, were both rezoned for residential development in 2020.
The deal gives Coronation Property, the developer that paid $315 million for another inner west site in Erskineville last year and which for a short time employed former NSW deputy premier John Barilaro, more than 3 hectares of development land just 10 kilometres from the Sydney CBD and on which it plans to build almost $500 million-worth of terraces, apartments and townhouses.
“This acquisition allows for seamless amalgamation with our existing [Ashbury] development site [at 165 Milton Street], enabling us to deliver a holistic solution and unified scheme for the best possible residential outcome,” Mr Nahas said.
Construction began last year at 165 Milton Street, a $218 million project known as Ashbury Terraces. More than half of the 136 residences have sold to date off the plan and the development is on track to be completed before the end of 2024.
Stage two at Ashbury – the newly acquired site – will yield a further 127 residences worth about $250 million. The site sold with an approved development application and a scheme designed by architects SJB.
Following the sales success at Ashbury Terraces, Mr Nahas said it had been a “no-brainer” to acquire the adjoining site.
For Mr Teplitsky, the sale of the Ashbury site takes the value of real estate holdings he has divested this month to more than $100 million after he sold a Darling Point waterfront site on Yarranabbe Road to Henroth, the Roth family’s investment and development company, for $55 million.
The Darling Point site was to have been part of a larger 3000 sqm luxury apartment development play, but that fell through after Mr Teplitsky failed to settle an $80 million purchase of two neighbouring properties, The Sydney Morning Herald reported this week.
In 2020, before Coronation Property proceeded with its development at 165 Milton Street, both Milton Street sites were on the market for a combined $90 million.
A year before that, Mr Milgrom headed a syndicate of investors that sold the 150-room Felix Hotel at Sydney Airport – now called Citadines Connect Sydney Airport – for $60.6 million to Singapore’s Ascott REIT.
In 2018, Mr Teplitsky famously defended producing few documents in a Federal Court matter by arguing he didn’t know how to use a computer.
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