Charter Hall Lodges Plans for $85m Office Extension

Charter Hall remains optimistic about future demand for office space, lodging plans for an $85-million extension to its office tower at 201 Elizabeth Street in the Sydney CBD.

The 11-storey development will replace the existing two-storey food court on the corners of Park and Elizabeth Streets and will provide 10,000sq m of additional office floor space plus a new lobby and plaza for the building.

Charter Hall has held the building since mid-2019 after outlaying $630 million alongside partners Abacus Property Group.

Previous owners Dexus had originally sounded out plans for a $400m overhaul of the tower, converting it from office spaces into a luxury hotel and apartment complex.

In its current format, the 38,000sq m tower, built in 1973, spans 38-storeys of office space plus ground floor retail tenancies and a lower ground food court.

Charter Hall has enlisted architecture firm FJMT to create the new podium extension and envelope for the existing building.

▲ The proposal includes an improved public domain and a reconfiguration of the lobby and retail areas. Image: FJMT

The site has had prior stage one envelope approval for a podium volume up to the 45m, matching the historical and existing street wall running the length of Elizabeth Street.

“Projects like this are a vital driver in Sydney’s post Covid-19 economic response with jobs created when construction commences,” a Charter Hall spokesperson told The Urban Developer.

“When completed [the development] will provide modern facilities to accommodate new permanent professional roles at a time when the economy is expected to be in a recovery phase.”

Charter Hall already had a large exposure to the CBD precinct—recent acquisitions include a half stake in Sydney's landmark Chifley Tower, which it bought for around $900m in 2019.

The developer is also testing the market, offering its landmark tower at 9 Castlereagh Street through Cushman and Wakefield.

Charter Hall bought the Harry Seidler-designed building through its Core Plus Office Fund in 2013 from Stockland for $172 million.

Late last year it cashed in on a prominent office tower in North Sydney, selling the building at 65 Berry Street to local fund manager Intera Group for $212 million.