New ultra-luxury tower to overlook Sydney’s Hyde Park
Shimao Group, controlled by Hui Wing Mao, has proposed an ultra-luxury tower overlooking Sydney’s Hyde Park that would be worth more than $1 billion after the Chinese-Australian billionaire dumped plans to sell a half stake in the office block on the site last year.
The group toyed with selling the interest in the landmark 175 Liverpool St office tower last November as it sought to capitalise on the rising office market in the city’s mid-town and southern precincts.
But that deal did not go ahead and Shimao is now seeking to demolish the existing building and replace it with either one or two luxury towers.
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The Chinese-backed group is cashing in on rising market sentiment, as Lendlease has proposed unit towers in harbourside Barangaroo and a twin tower apartment and hotel project has been proposed in nearby Pitt St by Chinese company Han’s Group.
The existing tower is known as 175 Hyde, with the prominent tower directly adjacent to Hyde Park on one of Sydney’s few large-scale, freehold island sites.
The Shimao tower also benefits from a northerly aspect, adding value to the future development, which has a cost of about $229.16 million, according to planning documents. But the end value of the project would top $1 billion as the existing office building alone is worth about $800 million.
The existing 48,877sqm office block was bought by Shimao in 2014 for $392 million and is almost fully leased, with 90% of tenants blue-chip companies or NSW and federal government departments.
The 31-level A-grade tower was also extensively refurbished in 2009 and 2013. Shimao will be hoping that replacing the bulky office building with one or two slimmer towers will win planning support.
While some Chinese developers, notably Dalian Wanda and HNA Group, have sold out of Sydney, and Yuhu’s project at Circular Quay remains clouded, the latest proposal may signal a return to form by mainland-backed developers.
Even when it last year offered a half stake in the building, Shimao insisted it remained committed to the local market although its billionaire owner had switched to pursuing agricultural assets.
But many of the recent blocks sold in the area have gone to office groups like Charter Hall, which picked up 201 Elizabeth St, where Dexus and Perron Group had proposed a hotel and apartment project, for $630 million.
This article originally appeared on www.theaustralian.com.au/property.
