Brookfield plans Circular Quay skyscraper
Canadian powerhouse Brookfield has snapped up a major Sydney building that could form the site for a landmark skyscraper just a block from Circular Quay in a $70 million play.
The group has bought an 18-storey building at 3 Spring St from long-time owner the Christie Group with plans to eventually transform it into a major tower in the city’s financial district.
The Australian revealed last year that Brookfield had quietly optioned up the site and it could seek to add to its pipeline of substantial Sydney developments.
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Dexus Property Group also owns a tower on the Circular Quay block, bound by Pitt, Bridge, Gresham and Spring streets, fuelling talk a consolidation may be under way.
Speculation began as Dexus put demolition clauses — triggered at the end of 2018 — into leases struck at the Royal Exchange Building.
The Dexus tower at 56 Pitt St is a Sydney landmark, with the site originally housing the Sydney stock and wool exchange.
Dexus and partner Canada Pension Plan Investment Board picked up the property as part of their 2014 takeover of the Commonwealth Property Office Fund.
Dexus has downplayed suggestions about a tie-up with Brookfield as its own site could also sustain a major tower.
Securing AMP as an anchor tenant last year means we are well placed in progressing the next steps of the development
However, the group is on the hunt for a key city site after the NSW government chose to advance a Macquarie Group plan to develop two towers in the heart of Martin Place through the controversial unsolicited proposal process, ending hopes Dexus had for its own $2 billion mixed-use scheme.
Circular Quay is a hotbed for development schemes with Lendlease undertaking a $1.5 billion tower, Mirvac pushing a scheme, Poly Group proposing an office building and Dalian Wanda doing a $1 billion hotel and apartment project.
AMP Capital is undertaking the largest project — the $2 billion Quay Quarter Sydney. It is anchored by a major office tower, which the insurer and fund manager will partially occupy.
The race is now on for precommitments and AMP Capital managing director, office and industrial, Luke Briscoe, says “securing AMP as an anchor tenant last year means we are well placed in progressing the next steps of the development”.
“This was a significant achievement for the project and we continue our detailed discussions with other potential new tenants, investors and other stakeholders,” he says.
Interest in Circular Quay is rising as developers have bolstered their retail and restaurant offerings and developers are promising new offices will set fresh efficiency and environmental benchmarks.
This article originally appeared on www.theaustralian.com.au/property.
