Dexus, Frasers Win Approval for $2.5bn Central Station Plans

Listed property giants Dexus and Frasers have received the green light to progress $2.5 billion plans for two towers at Sydney’s Central Station.

The joint venture’s billion-dollar plans, which include up to 150,000sq m of office floor plates, will move to the third stage of the NSW government’s unsolicited proposal process.

The developers will join anchor tenant Atlassian at Sydney’s so-called “Silicon Valley”, which spans 24-hectares at the southern end of the CBD.

The government said that Dexus’ long-term leasehold rights put it in a “unique” position to develop the site.

“The proponent is the only entity that could develop the site before 2099,” the unsolicited proposals panel said.

Dexus controls large swathes of long-term leaseholds within the western gateway sub-precinct of the government-planned hub.

Frasers Property owns the neighbouring 20-26 Lee Street.

Related: NSW Kick-Starts Economy With $7.5bn Project List

As part of the deal, Dexus and Frasers will contribute infrastructure to unlock future over-station development potential at the central station site.

The proposal includes two towers atop a podium building and the redevelopment of the Henry Deane Plaza at Sydney’s Central Station.

The Berejiklian government is targeting tech companies globally to take up 250,000sq m of office space in the precinct as well as 50,000sq m for start-ups and early-stage companies.

Dexus chief executive Darren Steinberg said that the precinct serves as a key gateway to the Sydney CBD.

“Central Place Sydney will reshape the daily experience for more than 20 million people who use central each year with a new public realm,” Steinberg said.

Dexus and Frasers now enter the final binding offer stage for the project, where a panel undertakes a final review and provides a recommendation for approval.

The controversial unsolicited proposals scheme, operated by the state government, allows the private sector to submit plans for development without a traditional call for tender.

The government has estimated the precinct will contribute 10,000 jobs and more than $3 billion annually to the NSW economy.