Chinese group plans Sydney’s third-tallest building
China’s Han’s Group is emerging as the next major player in the Sydney CBD, after lodging a development application for a mixed use development worth nearly $500 million with one of the tallest buildings in the city.
The Shenzhen-based group has developed over 4 million square metres of large-scale mixed use projects in China and its ambitious plan for Sydney may indicate that Chinese companies are still pushing ahead their investments here despite warnings of a potential slowdown.
The proposed development will be built on a massive envelope comprising six blocks in the city centre: 241-243 Castlereagh Street, 245-247 Castlereagh St, 249-253 Castlereagh St, 126 Liverpool St, 332-336 Pitt St, and 338-348 Pitt St. There sites were earlier bought by Michael Guo-controlled Visionary Investment Group.
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Han’s has emerged as controlling the properties and will develop the precinct. It lodged the application last week with development manager Touchstone Partners.
Han’s is proposing to spend $498 million to build a 67-storey mixed use development on the site, which, depending on the approval outcome, may potentially reach 240m and surpass the proposed 235m, 66-storey Greenland Centre apartment project on Bathurst Street. The current height restriction in Sydney is 235m, but under the City of Sydney’s new 20-year planning strategy commercial buildings can potentially be allowed to reach to 310m.
We are an investment platform in property. We have different partners on different projects
Han’s has been aiming to build a “landmark” tower between 260m and 300m with plans for more than 700 apartments, according to its Chinese website.
The Han’s development, known as 338 Pitt St, will have of 6025sqm of retail, 8873sqm of commercial, 10,364sqm of hotel as well as a four-level basement carpark. The residential component will have a gross floor area of 85,075sqm across 58 storeys.
The six blocks were formerly part of VIG’s portfolio. Guo has bought at least eight blocks worth about $490 million in the Sydney CBD over the past two years, along with his Chinese capital partners.
“We are an investment platform in property. We have different partners on different projects,” Guo told The Australian earlier this year, without mentioning Han’s. It is understood that Han’s, controlled by Shenzhen entrepreneur Gao Yunfeng, had been the major partner of VIG with a 95% stake in those properties. Sources have suggested that VIG may no longer be involved in the project. VIG’s Guo didn’t answer calls for comment, and Han’s was not available.
With total assets of 22 billion Chinese yuan ($4.3 billion), Han’s Group has developed projects including apartments, hotels, malls and office buildings across China, and operates hotels in Switzerland and New York.
