Parramatta City Council has received a windfall of almost $130 million for new community assets from the sale of a large site in Melrose Park where a new apartment complex will be built.

Lord Mayor of Parramatta, Cr John Chedid, said the 4.8ha site, bounded by Victoria Rd and Wharf Rd, has been bought by property group Aqualand Australia in western Sydney’s biggest development site sale of 2014.

“This is a great win for our community,” he said. “The site is a key eastern gateway to Parramatta near excellent public transport links and the Parramatta riverfront with Sydney-wide views.

“For many years, this site has been under-utilised and surplus to community needs. The sale provides a financial windfall for our community and will deliver high quality new housing in a sought-after location.”

The CEO of Parramatta City Council, Mr Greg Dyer, said Council had taken advantage of the current strong market for apartment development sites in Sydney’s west.  

“We have achieved a great result for our City,” he said “The sale will allow us to invest in new assets that will better meet future community needs. It’s about maximising the value of our assets for the benefit of our ratepayers and residents.”  

The site, which includes a mini-golf amusement park and vacant land, is partially owned by NSW Roads and Maritime Services.  

While the site has already been rezoned for apartments, Aqualand Australia will need to submit a development application detailing the proposal.

All relevant planning issues will be carefully considered and there will be a focus on high quality and environmentally sustainable design.

The sale was hotly contested by 11 parties, including both local and offshore developers, in an open expression of interest process. A decision to exchange contracts with Aqualand Australia was made at Monday’s Council meeting. The sale has a 100-day settlement period.

Cr Chedid said the new development would help to revitalise Melrose Park and provide much needed new apartments in the fast-growing suburb.

"It will also provide greater housing choice in the area – for empty-nesters looking to downsize and young couples seeking to enter the property market,” he said