Sydney is set to get its tallest ever residential tower after a $1 billion plan by Mirvac and Coombes Property to develop the George Street site was given the green light.
The 270-metre tower which will rise up 80-storeys, with 507 apartments was approved by the City of Sydney council on Thursday night and will be the latest piece of the revitalisation of the mid-town CBD precinct.
Having gone through a long planning process, development will start soon and eventually link George and King Streets in the southern end of the city, adjacent to the Sydney Town Hall.
It will offer luxury serviced suites and a rooftop restaurant and bar, while the podium will comprise a boutique cinema, retail, conferencing facilities, a childcare centre and a meeting room facility for the City of Sydney Council.
It will be next door to the ASX-listed hospitality giant Event Hospitality and Entertainment’s planned $225 million apartment and hotel tower, at 525 George Street.
Mirvac is managing the project on behalf of Coombes Property Group, with architects Ingenhoven and Architectus selected following an international design competition.
The planning consent comes amid the current concern of an over-supply of city apartments and lack of demand from overseas buyers, due to the impact of the coronavirus. But given the time it will take to construct the tower, expectations are that the market conditions will improve before the apartments are offered for sale.
Coombes Property Group is the landowner and developer of the project and will retain the ownership of the completed development while Mirvac is coordinating the project on behalf of the owner.
The 5 Star Green Star Design and As-Built-rated tower was designed by architects Ingenhoven and Architectus.
Coombes Property Group acquired the 4,308-square-metre site in 2009 from Challenger Financial Services and in 2015 secured site-specific planning approval permitting greater height on the site subject to the provision of community benefits.
Mirvac head of residential, Stuart Penklis, said 505 George Street is designed for the future.
“Residents will be able to live, work, shop and socialise, all within the precinct, recognising the desire of Sydneysiders for increasingly convenient lifestyles,” Mr Penklis said. “The proposal also incorporates a childcare and meeting facility to be dedicated back to the community.”
Coombes Property Group director Michael Coombes said the project has the potential to redefine Sydney’s mid-city precinct and help restore George Street as the thriving focal point of the city centre and main CBD thoroughfare.
“Its delivery will signal the resurgence of Sydney’s mid-town, revitalising the historic precinct which includes the adjacent Town Hall complex, and bringing it back into line with nearby Darling Harbour and Circular Quay,” Mr Coombes said.
SG Hiscock’s portfolio manager, Grant Berry, said the residential sector has currently been impacted by disruption to the sale process, cautious customers worried about their jobs, and pressure on tenants cautioning investors.
“However, settlements have been proceeding, with default rates relatively low, all things considered. More positively, there has been a material improvement in enquiries back to pre-COVID-19 levels,” Mr Berry said.
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