EVENT grows Sydney project pipeline to $500m
The new EVENT tower will be next to QT Sydney on George Street. Photo: Supplied

EVENT grows Sydney project pipeline to $500m

Hospitality and entertainment group EVENT has forged ahead with almost half a billion dollars of hotel and commercial projects in Central Sydney after lodging a development application this month for a $251 million tower next to its existing QT Sydney hotel.

The proposed development, revealed in its full-year results which showed a 6.7 per cent fall in normalised profits due mainly to a weaker Australian box office, is for a mixed-use building of up to 30 storeys at 458-472 George Street that would include an additional 72 hotel rooms, ground-floor retail and a commercial office tower.

EVENT acquired the site for $116 million in April 2017.

According to documents lodged with City of Sydney, the project has an estimated cost of $251 million.

It follows EVENT lodging a DA in July for a mixed-use tower of up to 43 storeys that would replace its cinema complex at 525 George Street at a cost of $222 million.

EVENT said this proposed tower would incorporate a new 450-room Atura Hotel as well as a seven-screen cinema complex and 72 apartments.

Both projects are expected to be completed within the next five to seven years, as it looks to grow the value of $2 billion property portfolio.

Operationally, EVENT’s cinema profits fell in Australia, but profits across its 62-hotel portfolio increased marginally.

The standout performer was its Thredbo alpine resort, where profits rose 15 per cent following a good 2018 snow season.

EVENT CEO Jane Hastings said the hotel result was “particularly pleasing with growth achieved on a record prior year profit despite well-publicised headwinds in key hotel markets with new supply”.

“EVENT’s performance continues to come under pressure from cyclical and structural headwinds in its core businesses, which are more severe than the market previously thought,” Citi Research analyst Sam Teeger said.

“However, the $2 billion property portfolio with development optionality could limit the share price downside.”

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