Hong Kong’s Phoenix Property Partners Buys Sydney Commercial Sites
AUSTRALIA – Hong Kong-based Phoenix Property Partners have teamed up with local developer Thirdi to purchase two sites located on top of Sydney Metro’s Crows Nest Station, on which they intend to build a mixed-use commercial project valued up to A$1 billion, reported The Australian Financial Review (AFR) on Wednesday (15 February, SGT).
Notably, Crows Nest Station is slated to commence operations in 2024. It’s one of the 18 new metro stations being built for Sydney’s Metro City & Southwest rail line, which will connect Chatswood on the lower north shore under Sydney Harbour with the city’s central business district (CBD) as well as Bankstown in the west.
Overall, the commercial development will have a floor area of about 409,029 sq ft. At present, the joint venture (JV) partners intend to construct a commercial building with a 200-room hotel as well as an office component measuring from 161,459 sq ft to 269,098 sq ft. This is in addition to a residential tower with a maximum height of 17 storeys.
Interestingly, the contract for the land acquisition allows Phoenix and Thirdi to pay the land price within 5 years, allowing them to ride out the current time of uncertainty. The next task is to come up with the detailed designs for the two sites, said Thirdi Director Luke Berry, who refused to disclose the selling price of the two commercial sites.
“We’ve been approved to develop within that envelope of 38,000 sq m (409,029 sq ft) and now it’s up to us to cut it up and put in different elements. [And] that five-year window allows us the time to get it right.”
Under the concept proposal for the above-station project approved in 2020, Lot A will have one or two buildings with office space, hotel, and retail units. Meanwhile, Lot B will contain ground-floor retail with 140 apartments, Berry shared.
Apart from having floor plates spanning from 5,382 sq ft to 16,146 sq ft, the commercial towers target to secure a sustainability rating of 6 green stars.
The upcoming mixed-use commercial development represents Thirdi and Phoenix Property Partners’ 5th joint venture project. Previously, Phoenix financed Thirdi’s 10-storey office building Blue & William in North Sydney that was subsequently acquired by Lendlease and Singapore’s Keppel REIT in 2021 for A$327.7 million.