CVC Limited (ASX:CVC), an investment company with a diverse portfolio including interests in property and other sectors, today announced an update regarding the planning proposal for its Liverpool project. The company disclosed that the New South Wales Department of Planning, Housing and Infrastructure (DPHI) has decided not to proceed with the planning proposal for the property located at 1 Heathcote Road, Liverpool, New South Wales. CVC holds a 66.7% interest in LAC JV Pty Ltd, which has a call option to purchase the 16.7-hectare property, settling in March 2027.
The planning proposal, initially lodged with Liverpool City Council in 2017, sought to rezone the currently E4 General Industrial land to permit mixed-use development, predominantly residential. Following a Gateway Determination in April 2023 and public exhibition, the proposal was declared a State Assessed Rezoning Proposal (SARP). However, after a rigorous assessment spanning nearly a decade, the DPHI determined that the proposal would not proceed due to significant structural and infrastructure constraints within the precinct. This decision means the property will retain its E4 General Industrial zoning.
Despite the setback for mixed-use rezoning, CVC’s Board remains positive about the asset’s future and its ability to generate returns. The property is designated as Regionally Significant Industrial under the Draft Sydney Plan. The Board highlighted that industrial and logistics assets in Metropolitan Sydney continue to benefit from constrained supply, high occupier demand, and sustained rental growth. They also believe the asset’s carrying value is materially below its current market value on an industrial basis, favouring industrial use over the execution risk and capital intensity of a mixed-use rezoning.
CVC and its joint venture partners will now actively pursue the optimal strategy for the property under its existing industrial zoning. The company extended its thanks to all stakeholders involved in the extensive assessment process and committed to providing further updates as appropriate.
