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Thursday f9 March 2015

Austalian Financial Review

ETT www-a.fr.com
CommerclalRelElate.comu
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Property

CommerciqlleolEstcte

The

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Urban renewalDevelopments sparkedbyalight rail linkare setto transform Sydney's George Street

By George! Sydney is getting a Main St

Mercedes Ruehl
Sydney's George Steet is being reborn
with more than $3.5 billion of develo

ment in the pipeline and new projects

for nearly every block between Town
Hall andCircularQuay.

A$3Sbpipelineof
developmens is setto revir

The caalyst for George Seet's

makeover is the $2 billion light rail pro
ject which has been more than a decade

inthe making.

"The light rail will make the city

sing" City of Sydney Lord lVlayor Clover

Moore said. "George Street

is

so

crowded and noiqyand the walkdown

to Circular Quay is unpleasant The
developmentis going to be EuIy tansformative."
Greg Crone, the chief executive of
achitecture firm Crone Patrrers, said
the revival was essential.

"It's very rae tat a city as esb

lished as Sydneywould make the bold

move

of

proceeding

with light rail

through the city," Mr Crone said.

"But it is essential because the city
has competition. Look at the Fans-

in

New York and other

global cities. It is staggering and fa
more responsible tha it has ever been
formation

but it is warranted."
But the Eansformation does notend
there,
total, building owners are

estimated to undergo more than $3.5

billion worth of development alongjust
one part ofGeor-ge Street over the next
few years. That number will grow this
year as more expected development
applications are filed.
"We have never seen the amount of
development between the Quay and
Town Hall Square, eve George Sneet
is just going to be a complely different
street " Michael Bate, Colliers International head of reAil, said.
'Every single block has got activity of
some description over the next four to
five years. Included in that will be a

considerable amount

6 g\r, gtri

space meeting tlte current demands

of

the global luxury retail brands who are

looking for their new homes in tlre

Sydney."
Every one is doing something differenL At the top of Circular Quay Dalian

hotel dwelopment at what is now Gold

Fields House.
,

Further up, commercial property

giants Brooldeld Office Properties and

Chater Hall will build new stateofthe.art offi ce sscrapers that will complement the newwynyard Station. The
station is getting its own $10O million
upgrade from the state govemmenl
Charter Hall joint managing director

David Harison the

lht rail

has

prompted building owners to get on

boad with thevision early.
.We would have developed 333
George with or without the light rail,
but the combination of a natural regeneration of Sydnqy's best boulerrad and
the infuast'ucture changes [is] acceler-

Above: an aftist's impression of how Grosvenor Place will look. Below: light rail running alongside the Queen Victoria Building.

ating refurbishments - particularly for

There ae also ahuge numberofnew

or

retail stores that front George Street"

residential

hesaid.

developments mooted, including Far

EastOrgarsation at 570 George Steet,
Mirrac and Coombes Property Group
at5o5Gorge SEeeL
But there is a downside. The bold
project will involve t"affc chaos and
huge disruption for Sydney-siders and
visitors to e CBD.

"For me as a landlord with lots of

large assets fronting George Sbeet
including 2 Pak 333 George and I
Matin Place, we think the pedesrianisation of George Sfreetwill add signi-

ficantly

to retail rents, amenity for

Sydney-siders and services

ers."

for work-

'There are naturally golng

Some building owners are doing

things as simple as upgrading their
foyer, such as GPT atthe HSBC Centre at
580 George St, or a retail Fansformation

at Grosvenor Place by owners DruS

Property Group, Inresta and ARIA
Growenor, one of Aust"alia's biggest

buildings was completed in 1988. The

orners are spending $18 million

expalding the two existing podium
floors to include five new dining areas
ad a new courtyard outside.

Kevin George, executive general

ad indusbial at

manager office

Wada, led by Chinese billionaire

it is an opportune time to
bring Growenor along for the next

Wang Jianlin, is going to build a more

than $1 billion luxury apartrnent and

revolution of Sydney's CBD.

'Mr George said the light rail was

DEXUS, said

sewiced apartnent

important, but rail transport, long the

domain of the states, needs more coordinated federal involvement, as there
is

forroads.

Elsewhere, Lend lase is forging

ahead with its own Circular Quay
redevelopment with a planning pro
posal submitted for a 22Gmete commercial tower. At the base will be a new
public area aea loown as Circula
Quay Place which include a network of
laneways, a public plaza on George

Steetand anewbike hub.

'The vision confibutes to the ?nsformation of George Steet and Circula Quay ad the continuing

development of Sydney as a truly$obal

city," Lend Lease said.
Furter up, closer tothe Sydney Hilton, Hotel Amalgamated Holdings is

nearing completion of its new corporate

headquters

aT

to

be

deFactors in terms of accessibility. It is

inevitable with such dynamic change
that thin will have to adapt to suit
thatdemand," Mr Crone said.
While construction will ramp up
after Anzac Day across parts of the
route, major constuction of the light
rail, where sections of George St are
closed, is not expected to begin until
September or October. It is expected to
be running from 2019.
DEXUS's Mr George puts it simpbl

'You cannot have important infrastructure delivered without

some

inconvenience."

478 George Streel

The first thee floors will be a flagship

retail space due to open prechristnas.

G i

ti. ii n itiahiv

CBRE
G[^D,

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Orrrco.t'.19 &29 PclwyRood

Strotegic retoil investments with potentiol exponsion

ond volue odd opportunities
Dominont lond holdings surrounding Woolworths
One of Austrolio's fosbst growing regions strotegicolly
locoted between Brisbone ond Gold Coost
To be sold seperotely or in one line

Woolworhs

Plus Pehol
Ssqm* retoil convenience centre
Complimentory speciolties including Bendigb Bonk
o Site oreo of 5,885sqm*
Net income $884,000 po*

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n
uaotffrg

I ,51

Drokes SUPA IGA

r
.
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3.O39sqm* neighbourhood shopping cenhe

Supporting speciolties including Dominos
Site oreo of 5,1ZOsqm*
Ner income $1,323,000 Pot

For Sole by Expressions of lnfeest closng

l2.OOpm

frursdcy lth Aprl 2Ol5 or

Michoel

Hedger
009

0488 059

Nick

Wllis
8(x

04{t9 595

tl

Croig O'Donnell

l,4tg 675 2o'2

3, Wotbront Po, Brisbonc,

NR

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