Tall & Urban News

AMP Capital has commenced construction on its Quay Quarter Tower at 50 Bridge Street in Sydney after securing a AU$900 million (US$692 million) investment from super fund platform Rest.

Multiplex has been appointed to build the commercial tower, following months of intense contract negotiations on the 50-story building with both Multiplex and Lendlease.

Lendlease reportedly put forward a tender that was more than AU$70 million (US$53 million) over budget late last year, spurring discussions with Multiplex.

After confirming that Rest will be taking a one-third stake upon completion of the AU$2.7 billion (US$2.08 billion) project, AMP will start construction on the key commercial element in the 11,000-square-meter Quay Quarter precinct.

Designed by Danish architects 3XN, the 216-meter-high tower comprises five shifting glass volumes stacked upon each other, punctuated by atrium space, maximizing views out to Sydney Harbour and daylight into the office floors. The tower will deliver around 90,000 square meters of office space.

At the base of the tower is an urban green space and approximately 5,000 square meters of lifestyle, services, food, and dining retail.

As the anchor tenant in the redeveloped Quay Quarter Tower, AMP is apparently well progressed in discussions with potential other major tenants.

In 2016, AMP Capital agreed to sell its headquarters overlooking Circular Quay to two of its unlisted funds – AMP Capital Diversified Property Fund and AMP Capital Wholesale Office Fund – for at least AU$430 million (US$330 million).

As part of that deal, AMP agreed to take up a major new lease in the proposed Quay Quarter Tower.

Quay Quarter Tower forms part of the 11,000-square-meter Quay Quarter Sydney precinct, incorporating the office tower, 33 Alfred Street and the Young and Loftus mixed-use precinct.

Early building work has already commenced, and Quay Quarter Tower is expected to be completed in late 2021.

For more on this story, go to The Urban Developer.