Tall & Urban News

Listed property giants Dexus and Frasers have received the green light to progress AU$2.5 billion (US$1.6 billion) plans for two towers at Sydney’s Central Station.

The joint venture’s billion-dollar plans, which include up to 150,000 square meters of office floor plates, will move to the third stage of the NSW government’s unsolicited proposal process.

The developers will join anchor tenant Atlassian at Sydney’s so-called “Silicon Valley”, which spans 24-hectares at the southern end of the CBD.

The government said that Dexus’ long-term leasehold rights put it in a “unique” position to develop the site.

“The proponent is the only entity that could develop the site before 2099,” the unsolicited proposals panel said.

Dexus controls large swathes of long-term leaseholds within the western gateway sub-precinct of the government-planned hub.

Frasers Property owns the neighbouring 20-26 Lee Street.

As part of the deal, Dexus and Frasers will contribute infrastructure to unlock future over-station development potential at the central station site.

The proposal includes two towers atop a podium building and the redevelopment of the Henry Deane Plaza at Sydney’s Central Station.

The Berejiklian government is targeting tech companies globally to take up 250,000 square meters of office space in the precinct as well as 50,000 square meters for start-ups and early-stage companies.

Dexus chief executive Darren Steinberg said that the precinct serves as a key gateway to the Sydney CBD.

“Central Place Sydney will reshape the daily experience for more than 20 million people who use central each year with a new public realm,” Steinberg said.

Dexus and Frasers now enter the final binding offer stage for the project, where a panel undertakes a final review and provides a recommendation for approval.

The controversial unsolicited proposals scheme, operated by the state government, allows the private sector to submit plans for development without a traditional call for tender.

The government has estimated the precinct will contribute 10,000 jobs and more than AU$3 billion (US$1.9 billion) annually to the NSW economy.

For more on this story, go The Urban Developer.