Macquarie plans major development for Martin Place station

Macquarie Group is looking to dramatically extend its grip on Martin Place by serving up an unsolicited proposal to the NSW government for a major project above the new Martin Place station.

The development would see the investment bank extend its holdings beyond its 50 Martin Place headquarters and likely spark the development of a major office tower.

The bank famously pulled back from property after heavy losses from the global financial crisis but it has since re-emerged as both a global fund manager, adviser and, on Sydney’s prime financial boulevard, an owner and developer.

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Details of the plan have been tightly held but it has progressed past an initial assessment by the NSW state government.

A Department of Premier and Cabinet spokesman says the government “is currently assessing an unsolicited proposal from Macquarie Group Limited for the development of the Sydney Metro City & Southwest, Martin Place Station”.

“The proposal is in Stage 2 and is being assessed under the unsolicited proposals process established by the NSW Government,” the spokesman says.

Transport for NSW and other government agencies are undertaking a “detailed assessment” of its merits, with no guarantee or commitment from either the NSW government or Macquarie, he adds.

The government insists that, regardless of the outcome of its assessment, there will “be no change to the timing of opening Stage 2 of Sydney Metro by 2024”.

The proposal is in Stage 2 and is being assessed under the unsolicited proposals process established by the NSW Government

Macquarie is also tight-lipped on the plan. “We note the NSW government has approved Macquarie to progress to Stage Two of the unsolicited proposal process to further develop Martin Place station underneath, and adjacent to, our global headquarters at 50 Martin Place to accommodate the Sydney Metro,” a spokeswoman says.

While the dimensions of the plan are unknown the controversial process was also used to approve James Packer’s Crown Sydney Resort Project, prompting complaints about the lack of an open tender.

In the property world, Brookfield in June won approval for its $1.7 billion office and retail development at Wynyard Place, which National Australia Bank is seeking to tie up as its new Sydney headquarters.

Transport NSW’s property acquisitions have already sparked controversy since they began last November. The agency bought about 100 properties but crucially, in the Sydney CBD, it did not buy a Macquarie owned building in Elizabeth St, that may become critical to the new plan.

Transport NSW says the property “was not required for the operational station design was not included in the acquisition program”.

This article originally appeared on www.theaustralian.com.au/property.