Event plans $1bn pair of Sydney developments
Listed entertainment, hospitality and leisure operator Event Hospitality & Entertainment has told investors it will examine funding options for two major Sydney developments that could have an end value of about $1 billion.
Over the past month the company has laid out the ambitious plans and flagged it will complete the projects over the next five years, prompting investors to suggest it will team with major developers.
“It will be a multipurpose development and they are likely to need a property developer partner,” Morningstar equities analyst Brian Han says.
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The company’s near $2 billion property portfolio was a star performer at its results last month, with revenue from the area up by 6%.
The group has plans for a 43-storey development at 525 George St that will also include a podium level with retail space.
Event will put in cinema screens, a 450-room Atura hotel and 72 luxury apartments at the top. The company intends to hold a design competition then lodge a stage two development application.
“Funding options are under review,” Event chief executive Jane Hastings says.
“It’s probably going to take around five years to complete, subject to market conditions.”
The company has also lodged plans for a landmark scheme on its site at the corner of Market and George streets to extend the QT Sydney hotel and build an office tower.
It is planning a 30-storey complex at 458-472 George St that would also offer more prime retail space as well as 72 additional QT rooms and a conference centre.
Event is also proposing a 20-level office tower spanning about 28,000sqm that commercial players says could be worth more than $500 million, making it an attractive proposition for pre-sale.
“Our funding options of both of these projects are still under review,” Hastings says, although she declined to provide further details.
Property players says the office component could be pre-sold but suggests Event would be reluctant to part with the hotel.
Event had a 2% bump in revenue from its continuing operations to about $1 billion after almost closing out the sale of its German cinema business.
The company, chaired by billionaire Alan Rydge, won share in the movie market but has been hampered by the lack of blockbuster and action-adventure films during the year.
This article originally appeared on www.theaustralian.com.au/property.
