CVC (ASX:CVC) said the New South Wales Department of Planning, Housing and Infrastructure (DPHI) has determined that a planning proposal for the Liverpool project at 1 Heathcote Road will not proceed, citing structural and infrastructure constraints in the precinct, according to a Monday Australian bourse filing.

The company holds a 66.7% interest in the LAC Unit Trust joint venture with Leamac Property Group, which has exercised a call option to purchase the property, expected to be settled in March 2027, the filing added.

The board said it remains positive about the outcome, given that industrial and logistics assets in metropolitan Sydney continue to benefit from constrained supply, high occupier demand, and sustained rental growth, with the asset's carrying value considered materially below its current market value on an industrial basis.

CVC and its joint venture partners will now actively pursue the optimal strategy for the property under its existing industrial zoning, per the filing.