Billion-dollar Parramatta growth plans threatened by state government move
Planned high-rise developments are under threat in Parramatta’s CBD, including a $1.6 billion twin-tower project proposed by GPT Group, due to the state government’s refusal to accept guidelines on their maximum size advocated by the City of Parramatta.
GPT said the city-shaping project at 91 George Street, which features a 57-storey office tower that’s already received site-specific Development Control Plan approval from council, could not proceed in its present form unless the government relaxed its stance.
At issue is an industry metric known as the floor space ratio, which defines the maximum floor area allowed in a proposed development in comparison to the site area.
City of Parramatta proposed “unlimited office floor space on sites greater than 1800sq m” but the state government decided to keep floor space ratios at 10:1 in the city core before approving council’s Parramatta CBD Planning Proposal last month.
The state government also reduced height limits on commercial developments from 60 storeys to 52 storeys, and mixed-use residential high-rise from 75 storeys to 69 storeys.
“The George Street project is threatened by the government’s decision to hold floor space ratios at the current level,” said Jamie Nelson, head of office development at GPT.
“We are fairly well advanced on one of those sites at 91 George Street. We have an approved site-specific DCP (Development Control Plan) and a design competition won by Bates Smart that’s resolved and endorsed.”
He said the floor space ratio decision could impact employment targets for Sydney’s second CBD set by the state government, which is spending billions on key infrastructure such as the Parramatta Light Rail and Sydney West Metro,
“On one hand, they’ve supported the city’s desire for growth and employment, but they’ve left some constraints there that potentially make it quite difficult to see the employment growth that was intended,” Mr Nelson said.
“I don’t think the government has realised that the constraints they have provided will hamper what they want for the growth of the city.
“Whilst we’re a fan of the Parramatta CBD and have obviously made significant investments there, our future investment certainly relies on a more flexible and open approach to those floor space ratios.
“It’s really important the government acts with urgency to resolve a pathway.”
City of Parramatta agreed that the NSW government’s cap on floor space ratios in the city’s commercial core could hinder intended outcomes.
“Council notes that these changes and the NSW Government’s rejection of proposed controls for some precincts may negatively impact the number of new jobs and homes that can be delivered,” a City of Parramatta spokeswoman said.
Ross Grove, Western Sydney Regional Director at the Property Council of Australia, said it had a “number of concerns” arising from the state government’s final determination.
“Long story short, we believe the CBD planning proposal could have delivered more commercial floor space – that’s it in a nutshell,” Mr Grove said.
Mr Nelson from GPT said developers and investors are raising the issue with authorities.
“We’re working with the government and local council to avoid stalling the investment and employment growth in the city and working a way to resolve this issue,” Mr Nelson said.
“The market is looking for the constraints to be lifted to allow investment to move forward in the way they have proposed.”
Parramatta’s office market is a major focus for GPT Group, which developed the 27-floor tower at 32 Smith Street, which officially opened last week, while four years ago it bought the nearby Eclipse tower for $277 million.
Late last year, the GPT Wholesale Office Fund spent $90 million expanding an existing site, giving it control of about 6500 square metres spanning 81-91 George Street in the heart of Parramatta’s CBD, on which it plans to build two office towers.
