Real estate investor Cromwell Property Group has received council approval for an integrated office and hotel development in Sydney’s Lower North Shore suburb Chatswood.
The $75 million development approval will encompass a new four-storey building which will offer more than 2,800sq m of office space and a new 156-room 4.5-star hotel.
Cromwell says the move is in line with its strategy of adding value to its domestic property portfolio.
Last year, the property group opened its $130 million Northpoint re-development complete with a 187-room Vibe hotel in North Sydney.
The new four-story building, at 475 Victoria Avenue, will also include upgrades to the existing twin 14- level office buildings, including new dining, conferencing and end-of-trip facilities.
Cromwell purchased the Chatswood asset in 2006.
Cromwell head of property Bobby Binning says the improvements are designed to benefit existing tenants.
“There is an opportunity to augment the amenity in Chatswood particularly for the growing professional and residential population.”
Binning said tenants would also benefit from the planned Chatswood to Sydenham Metro Rail expansion due in 2024.
The latest Savills Office Quarter Time Report shows that growth in A-grade office property values were more pronounced in areas outside of Sydney CBD for the 12 months to March.
In North Sydney values increased by 10.9 per cent, while Parramatta recorded an increase of 10.8 per cent in comparison to 4.1 per cent recorded in the CBD.