$2.5bn Sydney Central Station tech precinct set for final approval
Moves to kickstart major property projects have received a boost with the NSW government confirming a $2.5bn tech precinct on the western edge of Sydney’s Central Station has moved to the final phase of approval.
The move, foreshadowed by The Australian earlier this month, comes as the government looks to fast-track shovel-ready developments to keep the construction sector on track and contain rising unemployment.
The approval also lights the way for more technology companies to shift into the area, led by home-grown software company Atlassian, which is developing a neighbouring $1bn tower.
Technology company NEC is also backing the area after striking a memorandum of understanding with the NSW government to open a new office in the emerging precinct.
The listed Dexus and Singapore-owned Frasers Property Australia said they had achieved approval for their Central Place Sydney proposal to move to stage three under the government’s Unsolicited Proposals process.
The same route has been used just six times, including by James Packer’s Crown Resorts for its $2.2bn casino, hotel and apartment tower at Barangaroo.
The project next to Central Station, which is being lined up for a broader overhaul, is being pitched as Sydney’s most significant CBD development in more than a decade, providing employment critical to the state’s economic recovery.
The proposal includes up to 150,000sqm of workspace across two towers and a podium building, underpinning the delivery of the Sydney Innovation and Technology Precinct.
There will also be an integrated distribution facility that unlocks future over-station development. “This project will firmly establish Central as one of the most distinctive and lively places to work or visit in Australia and is set to rejuvenate Central as one of the key gateways to the Sydney CBD,” Dexus chief executive Darren Steinberg says.
Frasers Property Australia chief executive Rod Fehring says: “Central Place Sydney will reshape the daily experience for more than 20 million people who use Central each year with a new public realm, making it a seamless, enjoyable, and vibrant experience every day.”
The project will contribute more than $3bn to the NSW economy each year, accommodate more than 10,000 jobs and create more than 700 construction jobs.
There will also be servicing infrastructure to unlock future over-station development and to revitalise public areas.
Dexus and Frasers Property have access to unique property ownership on the western side of Central that puts them in a unique position to deliver the proposal. The properties are held under long-term leases, with 14 Lee Street held by Dexus and CPP Investment Board, and 20 Lee Street and 26 Lee Street held by Frasers Property Australia.
Final project approval will only be granted following government review and approval of a final binding offer.
This article originally appeared on www.theaustralian.com.au/property.
