St Hilliers Property has purchased a prime residential development site in Darlinghurst from St Vincent‚Äö?Ñ?¥s Hospital for approximately $20 million.

The site is located at 299 Forbes Street, Darlinghurst and is bounded by Bourke and Burton Streets.   The site is approximately 4,500 square metres in area and is currently occupied by the Caritas healthcare facility operated by St Vincent‚Äö?Ñ?¥s Hospital.

The sale was recently settled with vacant possession of the site to be provided in September 2010.

St Hilliers Chief Executive Officer, Tim Casey said Darlinghurst is one of the most highly sought after areas in the inner Sydney residential market and sites the size of the Caritas site were rarely available in one line.

‚Äö?Ñ??The resurgence of Darlinghurst began in the 1990s with the removal of through traffic from local streets following construction of the Eastern Distributor and Cross City Tunnel,‚Äö?Ñ?? Mr Casey said. 

‚Äö?Ñ??Darlinghurst has broad appeal for those wishing to capitalise on lifestyle opportunities and is now seen as a viable alternative to Elizabeth Bay.  The precinct has many amenities within walking distance including the CBD, entertainment and restaurants venues along nearby Oxford Street as well as major sporting facilities such as the Sydney Cricket Ground and the Sydney Football Stadium.‚Äö?Ñ??

‚Äö?Ñ??Our market for this development will be owner/occupiers, who are professionals or empty nesters.   We will be catering for their needs by providing spacious, over sized apartments with high quality finishes,‚Äö?Ñ?? he said.

St Hilliers acquired the site with concept plan approval for a residential and commercial development incorporating a number of heritage buildings on the site, which will be restored and adapted for re-use.   The development will incorporate 120 apartments comprising a mix of one, two and three bedrooms as well as commercial retail space.

Mr Casey said that following the closure of St Hilliers fourth property fund, which raised $200 million of equity from two of Australia‚Äö?Ñ?¥s major superannuation funds, the company may look to launch a residential property development fund in the near future.

The cornerstone investors in St Hilliers fourth fund, a development to core fund, are REST (Retail Employees Superannuation Trust) and First State Super.  They have committed to the $200 million in the open-ended wholesale fund and will participate in the development process effectively accessing the portfolio at cost rather than market price.    

‚Äö?Ñ??The Caritas property is a quality asset and could potentially be a seed asset for a medium-density residential fund.  We are looking to acquire assets with income streams of two to three years, which would provide an income phase while planning development approvals are sought,‚Äö?Ñ?? he said.

St Hilliers is currently targeting residential development opportunities within a 5 km to
6 km radius of the CBD of Sydney and Melbourne. 

St Hilliers is an award winning developer of residential projects having master planned, design and constructed residential developments valued at more than $450 million.  Major residential developments include Kings Bay, Five Dock, NSW; the Gateway, Kingston ACT; Mondrian, Green Square NSW, 151¬¨? East, Bondi NSW and Warehouse5, Waterloo NSW.