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ETT Thursday f9 March 2015www-a.fr.com I The Austalian Financial ReviewCommerclalRelElate.comu Property J/

Urban renewalDevelopments sparkedbyalight rail linkare setto transform Sydney's George Street

CommerciqlleolEstcte

Above: an aftist's impression of how Grosvenor Place will look. Below: light rail running alongside the Queen Victoria Building.

By George! Sydney is getting a Main StMercedes Ruehl

Sydney's George Steet is being rebornwith more than $3.5 billion of develoment in the pipeline and new projectsfor nearly every block between TownHall andCircularQuay.

The caalyst for George Seet'smakeover is the $2 billion light rail project which has been more than a dec-ade inthe making.

"The light rail will make the citysing" City of Sydney Lord lVlayor CloverMoore said. "George Street is socrowded and noiqyand the walkdownto Circular Quay is unpleasant Thedevelopmentis going to be EuIy tans-formative."

Greg Crone, the chief executive ofachitecture firm Crone Patrrers, saidthe revival was essential.

"It's very rae tat a city as esblished as Sydneywould make the boldmove of proceeding with light railthrough the city," Mr Crone said.

"But it is essential because the cityhas competition. Look at the Fans-formation in New York and otherglobal cities. It is staggering and famore responsible tha it has ever beenbut it is warranted."

But the Eansformation does notendthere, h total, building owners areestimated to undergo more than $3.5billion worth of development alongjustone part ofGeor-ge Street over the nextfew years. That number will grow thisyear as more expected developmentapplications are filed.

"We have never seen the amount ofdevelopment between the Quay andTown Hall Square, eve George Sneetis just going to be a complely differentstreet " Michael Bate, Colliers Interna-tional head of reAil, said.

'Every single block has got activity ofsome description over the next four tofive years. Included in that will be aconsiderable amount 6 g\r, gtrispace meeting tlte current demands ofthe global luxury retail brands who arelooking for their new homes in tlreSydney."

Every one is doing something differ-enL At the top of Circular Quay DalianWada, led by Chinese billionaireWang Jianlin, is going to build a morethan $1 billion luxury apartrnent and

A$3Sbpipelineofdevelopmens is setto revir

hotel dwelopment at what is now GoldFields House.

, Further up, commercial propertygiants Brooldeld Office Properties andChater Hall will build new stateof-the.art offi ce sscrapers that will com-plement the newwynyard Station. Thestation is getting its own $10O millionupgrade from the state govemmenl

Charter Hall joint managing directorDavid Harison the lht rail hasprompted building owners to get onboad with thevision early.

.We would have developed 333George with or without the light rail,but the combination of a natural regen-eration of Sydnqy's best boulerrad andthe infuast'ucture changes [is] acceler-ating refurbishments

- particularly for

retail stores that front George Street"hesaid.

"For me as a landlord with lots oflarge assets fronting George Sbeetincluding 2 Pak 333 George and IMatin Place, we think the pedesrian-isation of George Sfreetwill add signi-ficantly to retail rents, amenity forSydney-siders and services for work-ers."

Some building owners are doingthings as simple as upgrading theirfoyer, such as GPT atthe HSBC Centre at580 George St, or a retail Fansformationat Grosvenor Place by owners DruSProperty Group, Inresta and ARIA

Growenor, one of Aust"alia's biggestbuildings was completed in 1988. Theorners are spending $18 millionexpalding the two existing podiumfloors to include five new dining areasad a new courtyard outside.

Kevin George, executive generalmanager office ad indusbial atDEXUS, said it is an opportune time tobring Growenor along for the nextrevolution of Sydney's CBD.

'Mr George said the light rail was

important, but rail transport, long thedomain of the states, needs more co-ordinated federal involvement, as thereis forroads.

Elsewhere, Lend lase is forgingahead with its own Circular Quayredevelopment with a planning proposal submitted for a 22Gmete com-mercial tower. At the base will be a newpublic area aea loown as CirculaQuay Place which include a network oflaneways, a public plaza on George

Steetand anewbike hub.'The vision confibutes to the ?ns-

formation of George Steet and Circu-la Quay ad the continuingdevelopment of Sydney as a truly$obalcity," Lend Lease said.

Furter up, closer tothe Sydney Hil-ton, Hotel Amalgamated Holdings isnearing completion of its new corpor-ate headquters aT 478 George StreelThe first thee floors will be a flagshipretail space due to open prechristnas.

There ae also ahuge numberofnewresidential or sewiced apartnentdevelopments mooted, including FarEastOrgarsation at 570 George Steet,Mirrac and Coombes Property Groupat5o5Gorge SEeeL

But there is a downside. The boldproject will involve t"affc chaos andhuge disruption for Sydney-siders andvisitors to e CBD.

'There are naturally golng to bedeFactors in terms of accessibility. It isinevitable with such dynamic changethat thin will have to adapt to suitthatdemand," Mr Crone said.

While construction will ramp upafter Anzac Day across parts of theroute, major constuction of the lightrail, where sections of George St areclosed, is not expected to begin untilSeptember or October. It is expected tobe running from 2019.

DEXUS's Mr George puts it simpbl'You cannot have important infra-structure delivered without someinconvenience."

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