The family-owned Billbergia Group has topped out its 50-storey project in North Sydney, which at 180m high is the tallest mixed-use tower in the area.
Designed by architects Fitzpatrick and Partners, 88 Walker Street includes 24 levels of commercial office space, which was acquired earlier this year by LaSalle Investment Management.
The 252-key four-star hotel will be managed by Singapore-based Ascott Limited. Two floors of guest amenities will include restaurant, bar, residents’ lounge, gymnasium and reception.
At 55 storeys and 263m, only the Salesforce tower developed by Lendlease at Circular Quay is taller. That topped out in May this year.
It’s been more than four years since Billbergia submitted an amended development application to the North Sydney Council, growing the hotel and office building by 13 levels from 35 to 48 storeys.
Fitzpatrick and Partners’ cantilever design allows the building to sit suspended above the heritage-listed former North Sydney Fire Station, increasing the floorspace from about 4000sq m to more than 22,800 square metres.
The old fire station was built in 1895 and used by firefighters until soon after World War II.
The air rights to build above what is now the Firehouse Hotel,were acquired by Billbergia from local owner Mark Barry, who will retain ownership of the heritage building and continue to operate it as a pub.
“It is a great privilege to contribute to North Sydney’s revitalisation with the addition of such an iconic design to the city’s skyline,” Billbergia’s development manager Saul Moran said after the topping-out ceremony.
According to Billbergia, the site has had more than 210 workers daily at its peak. The project is expected to generate at least 1000 jobs when completed, including permanent roles within the hotel and retail components.
The developers said the “relatively-constrained area of just 650 square metres” had posed several development challenges.
“The concept of cantilevering the building unlocked the ability for us to develop the air space above the Firehouse Hotel and maximise the efficiency of the tower,” Moran said.
Commercial space will start at level 25 and deliver about 12,500sq m of A-grade office accommodation.
According to LaSalle Investment Management 10 per cent of the commercial office floors have been pre-leased, with another ten per cent under offer through leasing agents Colliers International and CBRE.
LaSalle said tenants were from a range of sectors including healthcare, finance, and technology.
It is believed 88 Walker Street has already set a record for rental rates for the North Sydney commercial office sector.
“We have seen a trend for tenants to relocate from the traditional Sydney CBD, further testimony to the overall transformation of North Sydney CBD precinct which is now home to many large corporates including Coca-Cola, Microsoft, Nine Entertainment, and Fairfax,” LaSalle’s co-head of Investment Management Simon Howard said.
Development in North Sydney has ramped up in recent months including construction poised to begin on Lendlease’s flagship commercial building in North Sydney, Victoria Cross Tower.
After years of apparent stagnation, North Sydney Council has now given the green light to about $11 billion worth of new projects in the past few years.
Billbergia’s 88 Walker Street is scheduled for completion by mid-next year.
