Urban Property Group acquires St Hilliers’ Gosford project

Sydney-based property company, Urban Property Group, has exchanged on a transaction to acquire Gosford development project, Central Coast Quarter from St Hilliers with the transition being approved by the NSW Building Commissioner.

St Hilliers, in early February, placed seven of their operating entities within the Group into Voluntary Administration including their Gosford development which included Stage 1 known as The Waterfront, a 25 level 136 apartments mixed development in the early stages of construction. Administrators have since then been negotiating to sell the property comprising a total of 4,114sqm on the corner of Mann Street and Vaughan Avenue.  St Hilliers had gained Approval for 334 apartments and 2,800sqm of retail space following a design excellence competition across the site.

A significant aspect of the transaction was that both St Hilliers and Urban are NSW Government endorsed iCERT certified developers and builders meaning that The Waterfront project is being built to a high standard of design and construction. With works to date being high quality, it has made the transition and purchase smooth, with buyers having peace of mind that St Hilliers has done a great job to date.

The acquisition marks a strategic move by Urban to enter the high-growth Central Coast market, and they say showcases the capability of a well-capitalised, strategic developer in a relatively unpredictable market.

Urban’s strategy prioritises buyer protection and quality assurance. This proactive approach underscores Urban's reputation as a trustworthy partner in property development.

Urban says it will honour the existing presales contracts with buyers already having been given the choice to rescind, giving buyer's ultimate flexibility, while providing certainty on an end date. One of the key measures to be implemented by Urban to safeguard buyer interests is the application of 10-year Latent Defects Insurance (“LDI”), offering additional protection against unforeseen construction defects for 10 years from the date of purchase. It will also seek to retrospectively apply this significant consumer protection to buyers of CCQ and will also employ stringent quality assurance measures to ensure timely completion of the construction phases.

Construction is set to recommence in the coming months.

With a phased completion strategy spanning three stages, Stage 1, will include retail spaces, public domain, high-quality apartments, parking facilities, and a food and beverage precinct to complement the development.

Commenting on the transaction NSW Building Commissioner, David Chandler OAM, said, “The smooth transition of the Central Coast Quarter project to Urban Property Group is an exhibit of everything that the NSW Industry reforms of the last five years set out to achieve. Trustworthy players delivering trustworthy buildings - which we backed by the assurance of iCIRT ratings and LDI – 10-year warranty insurance.”

 Patrick Elias, Chief Executive Officer of Urban Property Group, said “At Urban Property Group, we see the acquisition of Central Coast Quarter as not only a strategic investment, but also the chance to showcase the strength of our team and our commitment to excellence in property development. As a family business with over three decades of experience, Urban has grown into a multi-disciplinary organisation with the capacity to fund, design, develop, and build its own projects, and brings this unique set of experience and values to Central Coast Quarter.

Urban was one of the first developer and builders to achieve a NSW Government-endorsed iCIRT rating, offering an assurance of quality in both the design and delivery of its developments.  Urban Places is the Build To Rent arm of Urban Property Group. Urban Places creates and manages high-quality residential communities.

Meanwhile, Urban has confirmed that they will be able to absorb the St Hillier’s project team into the Urban Property Group team, and they will continue working on the project. Most subcontractors will also continue to work on the project.