Oxford Street project hit by $92 million legal battle
The $300 million Oxford & Foley development at the heart of Sydney Lord Mayor Clover Moore’s efforts to bring some razzle-dazzle back into Oxford Street is finally nearing completion. But there’s a catch.
After facing earlier construction delays, the development welcomed its first retail tenant last week when US rapper Tyler, The Creator triggered a crowd frenzy on Oxford Street as he opened his streetwear brand Golf Wang’s fourth global store while touring Sydney.
Sony Australia HQ is set to open its doors upstairs next month when the first of the three Oxford & Foley buildings are complete, at 60-120 Oxford Street.
Other tenants preparing to move into the modernised heritage buildings include the cult late-night Italian eatery Big Poppa’s, artisan gelatery Mapo, Mecca Coffee, Bourke Street Bakery co-founder Paul Allam’s new venture Paulies Pizza and luxury cycling apparel brand MAAP.
However, with the entire project nearing completion, a legal drama has now erupted. The developers AsheMorgan and TOGA have lodged a $92 million claim against the original builder, Growthbuilt, in the NSW Supreme Court over alleged breaches of contract, delays, loss of rent from tenants and defects.
They have also accused Growthbuilt co-founders Peter Sukkar and Colin Rahim of making misleading and deceptive representations. Growthbuilt has denied the claims.
Brewery deal
Hotel and property developer rich-lister Dr Jerry Schwartz, owner of Sydney Brewery, has expanded his footprint with the purchase of the brewing assets and long-term lease of White Bay Brewing’s Rozelle site.
The added capacity will enable the company to launch new product lines and expand its Sydney bar presence.
Under the plan, the White Bay Brewery will consolidate its brewing operations at its large-scale brewery in Reservoir, Melbourne.
Schwartz will then rebrand the White Bay Brewhouse and taproom as the Sydney Brewery Rozelle from October 1, 2025. The brewery operates within a 150-year-old former steel mill on the edge of Sydney Harbour, near to the new Sydney Fish Market building.
Sydney Brewery’s new venue follows the takeover earlier this year of the Rocks Brewery and Brewhouse in Alexandria, which has been rebranded as Sydney Brewery Alexandria.
Sydney Brewery also operates a Brewhouse in Surry Hills and a large-scale brewing facility in the Hunter Valley.
The Rozelle brewery will add 25 per cent extra capacity for Sydney Brewery, and that will enable the latter to launch its first low-carb and non-alcoholic beers.
Schwartz said the acquisition of the White Bay brewing assets and public tap room at 26C Mansfield Street, Rozelle, “fitted perfectly with Sydney Brewery’s DNA and expansion strategy”.
“Taking over the lease of the Rozelle brewery was a no-brainer for us,” Schwartz said.
Chanel store
Chanel has opened its very first domestic travel retail boutique in Australia at Sydney Domestic Airport, Terminal 2 – the country’s busiest domestic terminal. More than 17 million travellers passing through it every year.
The luxury brand, which has its new flagship store in Westfield Sydney, has partnered with airport retail operator Heinemann to open the 100-square-metre boutique. With a five-metre-high “neo-Paris” facade, it will bring a touch of Parisian glamour to Mascot.
It comes as new Ray White research reveals that Sydney is the country’s luxury fashion capital and Melbourne has the food sector wrapped up.
According to Ray White’s head of research, Vanessa Rader, Sydney maintains its position as the nation’s retail fashion capital, with clothing and soft goods representing 31.1 per cent of all tenancies, coupled with substantial retailing in the jewellery space at 25.8 per cent.
Tourism recovery is supporting retail performance across major markets, with hotel occupancy data showing strong results across all cities.
Frothy pub sales
More pubs have been sold as investors seemingly cannot get enough of the sector.
One of the latest is the Kurrajong Hotel at Erskineville, at 108 Swanson Street, which was sold by the receivers and managers of Jon Adgemis’ Public Hospitality fund, as a vacant freehold for $20 million to a new hotel investor, the Millinium Capital Managers, led by Tom Wallace.
Wallace has also been revealed as the recent buyer of two more Public pubs, being Balmain’s Town Hall Hotel and Paddington’s Rose, Shamrock and Thistle – aka Three Weeds – both in July.
HTL Property’s Andrew Jolliffe and Dan Dragicevich sold the Kurrajong Hotel.
Another inner west institution, the Warren View Hotel, at 2 Stanmore Road, Enmore, has been listed for sale with a price guide of $18 million. The hotel has been owned and operated by Theo and Tanya Damianakis for 17 years, who are considering exiting the industry after four decades.
HTL Property’s Sam Handy, Dan Dragicevich and Blake Edwards are the sales agents.
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