Decades-old plan for Sydney town square one step closer to reality

First discussed in 1982, the process of acquiring properties on the site slated for the redevelopment has been a long-term play for the council having secured the first and largest piece of the puzzle – the 1400-square-metre Woolworths site on the corner of Park and George streets – for $6.3 million in 1985.

Key piece
Flying under the radar until now is its most recent acquisition – an off-market purchase of the six-level Commonwealth Bank building on George Street in October, which was key to unlocking the site.

The 765-square-metre property opposite Town Hall at 546-552 George Street, with a 55 metre street frontage, is the costliest acquisition so far, with the council forking out $61.7 million to the vendors, the Pollack family, which founded developer group Mirvac.

The City of Sydney has coughed up about $150 million in total since 1985, including about $5.8 million for several strata units in one building fronting Pitt Street.

It’s been three years since its last acquisition, which was Pittsway Arcade at 303 Pitt Street for $43 million.

The last major hurdle for the City of Sydney is a small two-storey building fronting George Street, which is home to a Foot Locker, and is wedged between Woolworths and the Commonwealth Bank. It last sold to privately held company Silvacorp Pty Ltd for $6.5 million in 1997.

The council will also need to acquire 75 per cent of the strata on Pitt Street to have decision-making powers over the building.

The City of Sydney lord mayor Clover Moore has previously said that the purchase of all of the properties would be by negotiation where possible but otherwise they would be by compulsory acquisition.

Cr Moore said the creation of Town Hall Square “may still be some years away” but it was on track to be able to preserve a space to be enjoyed by future generations. The square will also benefit from a new metro station on Pitt Street.

“A public square in the city centre has been discussed since 1982, and we move closer to turning this vision into a reality with each property purchase,” Cr Moore said.

“We’ve spent years purchasing buildings, pushing for the pedestrianisation of George Street and for the construction of the light rail along the city’s central spine.”

No rush
As with its other property holdings, the City of Sydney’s purchase will provide commercial revenue until it is in a financial position to proceed with the new square.

The council may not be in a rush to kickstart the project given the Woolworths is one of the best trading stores in the country on a per square metre basis and would be providing a lot of revenue each year.

It’s unclear when Woolworths’ lease with the City of Sydney runs out.

The future town square was caught in the cross-fire earlier this year when the City of Sydney argued against plans for a $650 million development at Cockle Bay Wharf because the tower would overshadow the site.

However the development was given the green light by the state’s independent planning commission, arguing the overshadowing would be limited to a maximum of half an hour on two days of the year between 4pm and 4.30pm.