CVC Eyes Value Uplift at Sydney Industrial Site After Rezoning Bid Falls Through
CVC’s Liverpool asset pivots to industrial opportunity after rezoning decision
CVC Limited (ASX: CVC) has received confirmation that the NSW Government will not proceed with the Planning Proposal for its Liverpool property, but the Board is framing the outcome as a commercial positive. The approximately 16.7-hectare site at 1 Heathcote Road, Liverpool NSW, retains its E4 General Industrial zoning, a designation the Board believes positions the asset well within Metropolitan Sydney’s tight industrial market.
CVC holds a 66.7% interest in LAC JV Pty Ltd as trustee for the LAC Unit Trust (LAC), in partnership with Leamac Property Group. LAC has exercised a call option to purchase the property, with settlement due March 2027.
When big ASX news breaks, our subscribers know first
A complex planning journey: nine years of process now resolved
The Planning Proposal sought to rezone the site for mixed-use development, predominantly residential. The following timeline summarises the process:
- 2017: Planning Proposal first lodged with Liverpool City Council.
- April 2023: NSW Department of Planning, Housing and Infrastructure (DPHI) issues Gateway Determination.
- October 2024: Proposal publicly exhibited.
- December 2024: Declared a State Assessed Rezoning Proposal (SARP) due to its scale and complexity.
- May 2026: DPHI determines that Planning Proposal PP-2022-1602 will not proceed, citing structural and infrastructure constraints in the precinct.
Throughout this process, CVC and its joint venture partners made formal submissions as part of the assessment, reflecting active engagement with the planning authorities across the near-decade-long review.
Why the E4 industrial zoning may be the better outcome for investors
What does E4 General Industrial zoning mean for a Sydney landowner?
E4 General Industrial zoning permits a broad range of industrial and logistics uses, including warehousing, manufacturing, and freight facilities. In Metropolitan Sydney, industrial-zoned land has become increasingly scarce, which places upward pressure on both land values and the rents that tenants are willing to pay.
The property’s strategic weight is further reinforced by its designation as Regionally Significant Industrial under the Draft Sydney Plan. This classification identifies the site as a priority industrial location, meaning state and local planning policy is oriented towards protecting and activating that industrial capacity rather than converting it to other uses. For investors, that designation provides a degree of planning certainty that the prior rezoning bid, by definition, could not offer.
The market case for industrial
The Board points to three demand drivers underpinning its confidence in the asset: constrained supply, high occupier demand, and sustained rental growth across Metropolitan Sydney’s industrial and logistics sector.
Critically, the Board has stated that the asset’s carrying value remains materially below its current market value on an industrial basis. That gap between book value and assessed market value is a material consideration for investors evaluating the project’s potential upside.
The Board has also drawn a direct comparison between the two scenarios the company faced. A mixed-use rezoning would have carried significant execution risk and capital intensity, with no guarantee of a favourable planning outcome. Industrial use, by contrast, allows the joint venture to work with existing zoning entitlements, a structurally undersupplied market, and a clear settlement timeline. The following table illustrates how the Board is weighing these two paths:
| Scenario | Zoning | Key Risk | Board View |
|---|---|---|---|
| Mixed-use rezoning | Residential / mixed-use | Execution risk and capital intensity | Did not proceed |
| Industrial (current) | E4 General Industrial | Constrained supply tailwind | Board actively pursuing |
Board Commentary
“Given industrial and logistics assets in Metropolitan Sydney continue to benefit from constrained supply, high occupier demand, and sustained rental growth, the Board remains positive about the outcome and its ability to generate positive returns from this project.”
The next major ASX story will hit our subscribers first
CVC and Leamac to pursue optimal strategy ahead of March 2027 settlement
With the planning process now concluded, CVC and its joint venture partners will actively pursue the optimal strategy for the property under its existing E4 General Industrial zoning. Settlement on the call option remains on track for March 2027, a near-term milestone investors should note as the next substantive event for this asset.
The company has committed to providing further updates as the strategy is developed. The Board’s view that the carrying value sits materially below current industrial market value suggests the project retains a meaningful value-creation pathway, even without the residential uplift the original Planning Proposal had sought to deliver.
Stay Ahead on ASX Finance and Property News
Big News Blast delivers FREE breaking ASX announcements directly to your inbox within minutes of release, complete with in-depth analysis already done. Join 20,000+ subscribers who never miss a market-moving update. Click the “Free Alerts” button at StockWire X to start receiving alerts the moment news breaks.