Developers to create $250m Haymarket megasite
A high-powered trio of international and local developers are close to buying a major site in Sydney’s central business district in a deal that would see them amalgamate two parcels in Haymarket being bought for close to $250 million in total.
Sydney-based advisory firm for wealthy Asian investors, iProsperity Group, is believed to have teamed up with local developer Toga Group and its partner Far East Organization, to secure the two sites, which could support one of the city’s next major mixed-use developments.
In one leg of the deal, the group is close to buying a tower at 59 Goulburn St from Singaporean company Roxy-Pacific for about $158 million after a marketing campaign handled by Colliers International and JLL.
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That 23-level office tower sits opposite the bustling World Square precinct and carries approval for redevelopment into a 38-storey tower with 407 hotel suites and 90 residential apartments, and associated retail and office spaces.
But in a move that could add significant value to this holding, iProsperity Group, potentially with the support of its co-investors on the deal for No. 59, has put a neighbouring site under option, The Australian has learnt.
The site, set on the corner of George and Goulburn streets, spans 51-57 Goulburn St, 43-49 Goulburn St and 698-704 George St.
A clutch of private investors, operating as Goulburn Property Limited, put it on the block last year hoping to reap more than $100 million by selling the buildings, known as the Haymarket on George site.
While the option price is likely to be lower, that prime 1238sqm Haymarket parcel includes Scruffy Murphy’s Hotel and the historic Haymarket House. Buildings on that site could rise up to 41 levels, subject to council approvals.
Combining the two sites would create a far more valuable holding as the developers could undertake a more prominent project with a far larger footprint, challenging nearby skyscrapers planned by China’s Greenland Holding Group and local player Mirvac Group.
The deals are keeping with ongoing interest from Chinese and Hong Kong-based developers in Sydney towers and developments with warnings from regulators about the state of the apartment market doing little to stem the tide. The agents and parties declined to comment.
This article originally appeared on www.theaustralian.com.au/property.