Grocon ponders hotel development for Ribbon
An artist’s impression of the Ribbon at Darling Harbour in Sydney. Source: Supplied
Grocon could become the next big property player to participate in Sydney’s accommodation boom, with the group weighing the option of developing a luxury hotel and serviced apartment complex at its IMAX site at Sydney’s Darling Harbour.
The group is believed to be also pushing ahead with plans for a landmark $800 million office and retail complex, known as The Ribbon, but is now willing to consider other potential uses for the unique site.
The company this month upped its commitment to the harbourside project, on which it has focused on working up an office scheme for the past three years, by buying out private real estate group Markham, which had controlled the site, for just over $70m.
Grocon has been on a long hunt for an anchor tenant and its proposal for an eye-catching rebuild of the IMAX has won positive market reviews as few complexes can match its unique design features.
A potential switch to a hotel, with a serviced apartment component, could see the site’s value maximised and industry figures had hoped that Grocon would consider this move as demand for rooms is tipped to surge on the back of the new Darling Harbour convention centre precinct.
Industry experts suggested a five-star project could have about 400 hotel rooms and 150 serviced apartments, alongside a revamped cinema operation. Private hotelier Jerry Schwartz last year paid $360m for the International Convention Centre Hotel Lend Lease is developing and rising room rates have also seen M&L expand its Four Points by Sheraton Sydney.
Grocon’s harbourside site is not zoned for luxury units and an office project remains a key focus with leasing efforts also stepping up. Company representatives would not comment on the prospect of a potentially new direction and Grocon is well known in Sydney for its office towers. Grocon is shifting focus to Sydney as it aims to build its pipeline in the NSW capital. The group last month paid $56m for a site in Sydney’s northwestern Epping in a project that could yield 250 apartments. Earlier in the year, the Grocon and UBS Global Asset Management joint venture bought an office building in Sydney’s Pyrmont.
But the company is still bullish on Melbourne and is shortlisted for the rights to develop the 200m apartment tower in the city’s Queen Victoria Market precinct.
Source: The Australian - 28th October 2015
