Gold Fields House at Sydney’s Circular Quay, one of the prime development opportunities in the world, is tipped to fetch more than $400 million when it hits the market next week.
Circular Quay, untouched for years, is now being transformed to rival the nearby Darling Harbour.
“Circular Quay between the Opera House and the Harbour Bridge is considered the most iconic urban geography in Australia,” said Graham Jahn, City of Sydney director of city planning and development.
“The sale of 1 Alfred [Street] plays an important part in the renewal of the ADPG Block – Alfred, Dalley, Pitt and George Streets. It should be very successful.”
Gold Fields House has approval for two apartment towers, one of 185 metres or near twice the current height, and one of 55 metres.
The consent could pave the way for 197 apartments, with some of the best views in the country.
The site’s appeal was enough, several years ago, to attract the attention UK’s developer to the mega rich, Candy & Co. It is also the last puzzle piece of the broader Circular Quay redevelopment.
The City of Sydney has grand plans for the precinct, which will be home to large-scale projects by AMP, Mirvac and Lend Lease.
MORE THAN $17M IN INCOME
Gold Fields House, a near 50-year -old office building is more than 90 per cent leased, with a net income of more than $17 million.
But given the strength in demand for inner-city apartments, the existing office tower is most likely to sell to a developer. All leases past 2017 have break clauses. Gold Fields House is co-owned by Blackstone.
The private equity firm took over and delisted Valad Property Group in 2011. The other owners are Valad’s V-Plus Core Fund and Dutch fund APG.
Valad bought the site in 2006 for $274 million. All owners are selling out. JLL’s Rob Sewell and CBRE’s Rob Blain and Tom Southern will market the site.
CIRCULAR QUAY’S WIDE DEVELOPMENT
Circular Quay is already being carved up by developers. AMP and Mirvac are building a commercial tower at 200 George Street while Lend Lease will also wade into the precinct with an office tower.
“Lend Lease intends to proceed with a planning proposal [for its George Street buildings] while Mirvac, which have the GE holdings on Pitt Street also intends to lodge an application in the near future,” Mr Jahn said. All eyes will also be on AXF Group and Ever Bright Group, who purchased the Rugby Club and Fairfax House behind Gold Fields House this year.
The council says Gold Fields House will complement the redevelopment of a precinct that stretches from Alfred Street back to the Stock Exchange.
Gold Fields House also has extensive potential for retail on the lower levels.
A network of laneways is planned, which will be home to a variety of food and beverage operators.