Hemmes in a two-horse race for Hunter Street station towers
Hospitality tsar Justin Hemmes has added his lustre to a consortium including ASX-listed players Lendlease and Mirvac which is vying with US property giant Brookfield to develop Sydney CBD’s latest landmark, a twin tower project that will rise above the new Hunter Street metro station.
The two towers, each of 50-storeys or more, could deliver as much as 150,000 square metres of commercial office space, ultimately worth billions of dollars when fully developed. Adding to its value is its location in the heart of the CBD and its links to both the Sydney Metro West services and, via underground walkways, to Martin Place and Barangaroo.
On Monday, the NSW government short-listed the two groups to tender for the delivery of the landmark station, and two buildings above. The Hunter Street station will have two entrances, one on the corner with O’Connell Street and the other on a corner with George Street. A decision is expected in 2024.
The Brookfield consortium – it brings together several arms of the Brookfield business – has experience in over-station development nearby, transforming the precinct around Wynyard Station with a $2 billion office tower after pursuing an unsolicited proposal with the state government.
Competing with Brookfield for the Hunter Street precinct prize is the Metropolis consortium which brings together Justin Hemmes with Lendlease, which is developing above the Victoria Cross station in North Sydney, Mirvac and the Coombes Property Group, a family-owned platform with a commercial portfolio that straddles several states.
Transport minister David Elliott said the new metro station would help revitalise Sydney’s CBD, with commuters benefitting with connections to the George Street light rail, as well as trains at Wynyard and the new Sydney Metro City and Southwest station at Martin Place.
“Sydney Metro is a game changer for Sydney – revitalising places, reducing travel times and providing a boost for local businesses,” he said.
Sydney Metro chief executive Peter Regan said the tender process, involved working with a precinct development partner, which was a first-of-its kind model.
“The shortlisted consortia have already been through a competitive procurement process, and now will get to work on detailed proposals that maximise place-making outcomes and show how they will integrate the precinct and the station,” he said.
Over-station development at a number of sites through the Sydney CBD is driving a new generation of office towers, such as the Macquarie project on Martin Place and the Oxford Properties and Investa developments above the Pitt Street station.
