Aqualand checks into build-to-rent project in North Sydney

The Sydney Harbour view from the 132 Arthur Street site, where Aqualand plans to develop a 40-storey tower block.

Property group Aqualand is planning a unique 40-storey complex in North Sydney that will combine a luxury hotel and build-to-rent apartments with the aim of bringing a touch of New York’s East Village to the area.

The move would be a first in Australia and seeks to address the housing crisis by providing long-term accommodation for renters, while also ­capitalising on a shortage of hotel rooms in the area.

Most other developers have proposed either build-to-rent projects that stand on their own, or hotel complexes that are devoted to serving the tourism and corporate markets.

The tower would be built on the site of Aqualand’s existing office block at 132 Arthur Street, North Sydney, that it bought from fund manager Centennial Property Group for about $70m in 2016.

The planned tower would include 240 hotel rooms spread across 12 storeys, below about 225 build-to-rent apartments across 25 storeys.

It would also sport ground floor food and beverage offerings, a hotel lobby and conference space.

The project will sit in the rejuvenated North Sydney CBD, near North Sydney station and the Victoria Cross metro station, which is due to open in August.

Aqualand said the hotel would capitalise on North Sydney’s lack of mid-range hotel accommodation by offering an edgy and urban vibe, rather than the standard corporate-style hotel offering.

The project also boosts the company’s commitment to the build-to-rent model to help alleviate the restricted rental market, and shows it remains an important part of the housing sector, despite difficulties in launching projects in Sydney due to high costs.

Aqualand sees the project as capitalising on the growing demand for high-quality and professionally managed rentable residences, particularly in busy commercial precincts.

“We’re excited to progress our third residential project in North Sydney into the hotel space, which demonstrates our unique ability to pivot to whatever best suits the location,” said Aqualand group managing director Jin Lin.

“We look forward to offering something you’d expect to see in Surry Hills, more so than North Sydney, and have taken inspiration from hotels you’d expect to find in New York’s East Village, Shoreditch in London, or even Berlin.”

Mr Lin said the company envisioned a “contemporary ambience, combined with a slick and highly personable front-of-house and professional behind-the-scenes operation”.

“It will increase North Sydney’s appeal in the tourism sector and help generate a thriving 18-hour economy,” he said.

Mr Lin said the company was deeply committed to the North Sydney area as shown by its BLUE at Lavender Bay project, which was completed in 2021, and the recent completion of its AURA by Aqualand precinct at 168 Walker Street.

The property group, which is also behind Central Barangaroo, took the leap into the build-to-rent market last year, and plans to develop another of the specialist unit towers in North Sydney.

Aqualand filed plans for a 40-storey tower at 146 Arthur Street to be developed on the site of the ageing office complex it picked up in 2017 from Chinese trading company General Nice Group for $78m.