This article is from the Australian Property Journal archive
DEVELOPER Gurner has snapped up a prime Sydney Harbour site earmarked for a future $800 million 34-storey two-tower landmark development.
The 1,195sqm site at 189 Kent Street adjoins the Barangaroo precinct, is currently occupied by a 1960s-built commercial office tower and has already been given a planning approval for a residential development.
The planning approval was granted after a long process by the site’s former owner and vendor, Barana Group, who had held the asset since 2002.
The project will be designed by award-winning architect FJC, who won a competitive design competition between local and international architects.
This is the second transaction between GURNER and Barana Group, following their first partnership to develop St Kilda’s former Novotel site into the successful Saint Moritz, back in 2018.
“Sydney and this key strategic site in particular is crying out for an ultra-luxury offering like Saint Moritz that transports its owners into a world of luxury and service above anything else in the country, inspired by the best hotels around the world,” said Tim Gurner, CEO at Gurner Group.
“This site is positioned within one of the most expensive and luxurious locations in Australia so we plan to take what we know from Saint Moritz and apply it on a whole new scale, to offer the market something that is completely unique in terms of design, luxury, service and amenity.”
The acquisition represents GURNER’s first seed site to have capital deployed within its $2 billion build-to-sell (BTS) development fund.
The transaction is also part of GURNER’s larger strategy to expand its $10 billion national pipeline of both build-to-sell and build-to-rent assets across the country.
Tim Gurner and alternative real estate investment manager Qualitas recently expanded their GQ Multifamily build-to-rent platform to 3,650 apartments, unveiling new projects in Melbourne’s inner east, South Melbourne and Brisbane.
The current planning approval covers for two towers, ground-floor retail, restaurants and bars, a health and wellness component, and basement carparking.
GURNER is set to seek small amendments to the approval to reduce the number of apartments and increase the amenity provisions.
Justin Brown, Tim Rees and Ben Wicks from CBRE managed the transaction. With GURNER set to hold the buildings current tenancies until the leases complete.
