Developer in push to convert offices into luxury boomer towers
LOS ANGELES: Developer are pushing to convert more mid city office towers into luxury boomer residences.
Development heavyweight Lendlease is circling a major Sydney office tower as it looks to restock its luxury apartment pipeline, in a play where it could emerge with control of a key property overlooking Hyde Park.
A successful move on the near-$1bn office tower would see the Australian major again capitalise on the exit of a Chinese developer which had planned a project but has been unable to realise its ambitions of launching luxury apartments in Australia.
The listed developer has held talks to acquire 175 Liverpool Street, owned by interests associated with Chinese-Australian billionaire Hui Wing Mao, and if it got control of the site it would look to kick off the project in line with its focus on top-end units.
The billionaire last year won approval to replace the existing building with two unit towers designed by Bates Smart. The planned dual 36-storey tower development would include 289 apartments, retail space, and 10,098sq m of commercial space in the lower six levels.
The Bates Smart scheme has been promoted as matching the symmetry and order of Hyde Park, with its art deco War Memorial, as well as being in keeping with the nearby Surry Hills warehouses and laneways.
Buying the site would also be in line with Lendlease’s plans to become the dominant player in the luxury apartment market, where it has had lucrative sales and can absorb some of the rising building costs which have hit other projects.
Mr Hui is understood to have fielded interest from Lendlease and its rivals last year, and had considered a joint venture structure, senior sources said.
While that did not proceed, due diligence was undertaken and Lendlease had rekindled its interest this year, with both parties in an improved position to undertake a transaction.
Lendlease reported healthy results showing it was getting back on track as it sells off assets internationally, and it signalled it would return capital to its core operations in Australia, including luxury towers.