Source: Green Street News
Author: Su-Lin Tan
Date: 09 September 2025
ARC Property and Zagga have joined forces on La Strada in Potts Point
- What Zagga has made a senior loan to ARC Property to finance the development of its ultra-luxury apartment project, La Strada
- Why Luxury projects are profitable given high construction costs
- What next Construction at the four-unit project is set to commence
Private financier Zagga has provided senior lending to luxury developer ARC Property for an ultra-luxury apartment project in Sydney’s Potts Point, Green Street News can reveal.
Construction is set to commence on La Strada, which will occupy the site of its former celebrity restaurant namesake. The building will house just four apartments plus ground-floor retail space.
The senior loan refinances the ARC’s land purchase and funds the development of the roughly $50m project at 95 Macleay Street. Zagga did not disclose the actual loan amount.
The project, in one of Sydney’s most affluent suburbs, has attracted interest from wealthy buyers, with its three-bedroom penthouse selling for $20m last year. That unit has a rooftop pool and entertainment terrace with views of the Harbour Bridge and Opera House.
The other three apartments, which have also sold, will share a rooftop wellness retreat and terrace.
ARC, led by Sydney entrepreneur Peter Metzner, scooped up the famous 322 sq m site in 2021 for $8.5m. The parcel had been followed closely by Sydney’s property elite given its former occupant, the now-shuttered La Strada restaurant. La Strada was one of the many restaurants owned by the late Sydney restaurateur Giovanna Toppi and had hosted celebrities.
Luxury development like La Strada has proven viable for many developers as well as private financiers like Zagga. Their higher price points make them more profitable than other apartment buildings amid elevated construction costs.
Other luxury developers that Zagga has financed include RnB Property Group, which has projects across Sydney’s eastern suburbs.
While Zagga financed La Strada after the units sold, in many cases it will also lend towards projects that do not have pre-sales. The group assesses risks of projects on their merits, whereas traditional lenders tend to require pre-sales before they advance loans.
Zagga has invested over $2.5bn across more than 300 commercial real estate transactions in Australia since it launched in 2017. It raises most of its funds from institutional investors and family offices.
The Sydney-based firm launched a Singapore fund this year to tap into Asian capital. It is looking to raise more such capital.
There is growing appetite among Asian investors for private credit financing in Australia. Singapore’s Temasek-owned CapitaLand paid $200m for one of Australia’s largest lenders, Wingate. That deal settled in June.
