Approval Granted for $500m Sydney CBD Hotel

Melbourne-based ICD Property and real estate investment firm Belingbak will break ground on a $500-million hotel development in the southern end of Sydney’s CBD by 2024 after securing planning approval from the City of Sydney.

ICD and Belingbak’s 58-storey development will be built on a 1300sq m amalgamated site from 372 to 382 Pitt Street.

Belingbak created the development site after striking deals to acquire eight neighbouring Pitt Street properties from their private owners.

Its approved project, known as 372 Pitt, will stand opposite World Square in Sydney’s burgeoning technology precinct. It will comprise a 300-key hotel, 30 high-end apartments as well as ground floor retail and dining.

“The hotel will act as a catalyst for the wider precinct, delivering quality architecture, urban activation, increased job opportunities, accommodation, and a successful streetscape retail offering,” ICD Property chief executive Matt Khoo said.

ICD Property and Belingbak will now invite five leading architecture firms to compete for the building’s final design, which will also include a ground floor retail offering of food and beverage outlets, entertainment and public art.

Following this process, the site’s detailed development application will be lodged in early 2023.

Architecture firm Woods Bagot and town planner Urbis undertook the concept design proposal which was submitted to council late last year.

▲ The development partners hope to kick off construction in 2024 and complete the project by the end of 2026. Image: Woods Bagot

“This is one of the most exciting stages of development in Sydney,” Khoo said. 

“When we’re able to work with a variety of world-class architects, each with distinctly original philosophies and approaches to design, it is hugely rewarding.

“We will witness five vastly different potential outcomes for the site, endeavouring to find the perfect fit that balances our vision and the city’s needs.”

The approved proposal will include the “meaningful retention” of six out of the seven 112-year-old terraces that are rare surviving examples of Edwardian Free Classical Federation era architecture.

The Pitt Street project marks ICD Property’s second Pitt Street development. The developer was handed approval for the $760-million redevelopment of Sydney’s iconic City Tattersalls Club which will transform the 127-year-old club at 194-204 Pitt Street.

The approved plans allow for a 142m tower comprising a 101-room hotel and 241 luxury apartments to be built above the City Tatt’s buildings, which will be upgraded to include new shops, bars and restaurants, a wellness centre, event spaces and a co-working club.

Off-the-plan sales will launch shortly for that project, followed soon after by the commencement of construction.

For Belingbak, the approval of 372 Pitt marks a milestone for the emerging real assets business with an active platform across NSW and WA.

Belingbak founding director Jack Montgomery said the investment firm had been given an opportunity to deliver a truly world-class, mixed-use building.

“As Sydney evolves on the global stage, so too will this building,” Montgomery said.

“It will provide a benchmark, a feeling of connection and a place loved by tourists and locals alike.”

Nearby, in Sydney's emerging Tech Central precinct, Dexus and Frasers Property Australia have put the final touches on their proposal for a $3-billion commercial project across two 35- and 37-storey towers while Dexus has begun construction on Atlassian’s $1.4 billion headquarters.

Developer Toga is also moving ahead with plans for a 42-storey commercial tower of its own.