Buyer of Denison Street development site set to start work "immediately"

Virtical, formerly known as Core Asset Development (CAD), bought the former Europcar site at 20 Denison Street last month.

Previously planned to be developed as the Novo apartments, construction of a luxury mixed-use development is expected to start immediately.

Development approval already has been granted for 78 luxury apartments and parking spaces for 97 cars. The DA also includes two ground-floor commercial suites.

A top-floor restaurant and bar are also planned for the project, with completion expected in early 2025.

"We are very excited about the unique opportunity to put Newcastle West on the map for residential, following the great development activity in the CBD and Honeysuckle area over recent years," CAD director Mark Toma said.

"Situated close the Newcastle Interchange and major retailers, our development sits in the heart of the Newcastle Urban Renewal Strategy and we plan to make the development a jewel in the city's crown."

Virtical has engaged Construction Consultants as project manager and is in discussions with architects Tonkin Zolaihka Greer to refine the design of the 20-storey building.

The complex covers 7487 square metres, with apartments featuring balconies and full-length glazing to take in harbour and beach views.

The building will include one-, two-, three- and four-bedroom apartments.

Mr Toma said the apartments were expected to appeal to owner-occupiers as well as investors.

The 1636 square metre block was sold as a mortgagee sale via expressions of interest campaign earlier this month, with Commercial Collective selling agents Matt Kearney and Adam Leacy and CBRE's Xavier Rahme and Nicholas Heaton.

Mr Kearney said the listing drew 50 enquiries in the first week and resulted in eight offers.

He said rising construction costs were probably to blame for the Novo project being abandoned.

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