Developer plans major hotel and office development at Sydney Central

The Adina at Sydney Central.
The Adina at Sydney Central.

The mixed-use precinct around Sydney Central Station is taking shape with private developer Toga looking to undertake a major hotel and office development on the site of The Adina Hotel Sydney Central.

The move comes as part of a broader revamp of the area in which technology giant Atlassian and developers Dexus and Frasers have already proposed projects. It would see them joined by the TFE Hotels venture Toga runs with Far East Hospitality, which runs more than 70 hotels across Australasia and Europe.

Toga has just tapped into the NSW government’s controversial unsolicited proposal process, following Dexus and Frasers that have used this route for their adjacent office and apartment projects.

All are part of the broader Western Gateway precinct next to the city’s main transport hub and Toga will likely pitch the modernised hospitality facilities as critical to the area.

The Four Points by Sheraton Sydney is at nearby Central Park but more accommodation will be required as the technology and business hub is developed.

The government is seeking to get a multi-billion-dollar technology precinct off the ground and a tech hub was last year unveiled by billionaire Atlassian co-founder Scott Farquhar and NSW Premier Gladys Berejiklian.

Atlassian last October revealed it would shift its headquarters to a planned premium 35-storey building in the area. The office tower will also include a mixed-use hotel and innovation space in a tower on the site of Railway Square YHA backpackers.

Dexus and Frasers are proposing to redevelop their Lee Street properties into a mixed-use development, and also won initial government support last August.

Their properties are held under long-term leases, with 14 Lee Street held by the Dexus Office Partnership, and 20 Lee Street and 26 Lee Street held by Frasers.

The NSW government said Toga’s proposal was of “sufficient interest” to warrant further development and progression to a more defined project.

Toga is seeking to redevelop the sites including The Adina Hotel Sydney Central and Henry Deane Plaza at Lee Street into an office and retail development including about 250 hotel rooms, together with conference and meeting facilities. Toga wants to convert its current long-term ground leases over its current sites that are owned by owned by RailCorp to freehold title. The government said the proposal had benefits including facilitating the development of the Sydney Innovation and Technology Precinct and helping integrate Henry Deane Plaza with Transport for NSW’s plans to revitalise Central Station.

Toga will ensure the conservation of the heritage-listed Parcel Post Building which houses the current Adina Hotel.

Toga is long-term lease holder of the sites and is the only party that has the right to redevelop them, giving it “unique property ownership”. A steering committee and an assessment panel has been set up to oversee the project.

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