Sydney Development Site Hits the Market for $130m


Sydney Irish pub Scruffy Murphy’s along with two neighbouring sites have hit the market for $130 million.

The amalgamated development site on the corner of George and Goulburn Streets at the southern end of Sydney’s CBD holds stage one approval for a 40-storey tower lodged with the City of Sydney early last year.

Owner KGH set in motion plans to develop a total of 17,000 square metres in gross floor area comprising a hotel and residential tower or potentially a commercial development with an end value of more than $300 million.

▲ Scruffy Murphy’s at 43-49 Goulburn Street in Haymarket has been listed along with 698-704 George Street and 51-57 Goulburn Street.
▲ Scruffy Murphy’s at 43-49 Goulburn Street in Haymarket has been listed along with 698-704 George Street and 51-57 Goulburn Street.

KGH, owned by private owners Pierre Wakim and Mario Khaicy, who is also a director of Northpoint Construction Group, lodged the development application in January of last year.

Plans for the prominent corner site near Chinatown allow for a 153-metre building and include the demolition of some of the older commercial buildings across the sites but the adaptive reuse of the heritage Kiss' Building at 43-49 Goulburn Street.

Knight Frank’s Dominic Ong, John Bowie Wilson and Massari’s Simon Elcham are handling expressions of interest for the site.

“This is an extremely rare opportunity to secure a sizeable 1,225 square metres of prime Sydney CBD land with enormous development potential,” Bowie Wilson said.

“There are currently a number of development options on the table which include a hotel, an office tower, residential apartments or a mix of all three.”

“All of which are permissible under the current planning controls and have enormous potential to generate excellent development revenue returns.”

KGH, which initially outlaid $127 million in costs for the development of the site, has a history of selling sites once approvals have been obtained.

Future development could likely yield a tower that will house a 240-room hotel and apartments on the upper floors.

The lower floors of the building will be used for a hotel lobby, amenities and retail shops.

“Whether the site is developed into a hotel, mixed use or commercial property, its proximity to the George Street light rail, the Sydney Metro, and also the Central station upgrade will be highly beneficial,” Knight Frank NSW partner Dominic Ong said.

There are also a number of other new developments in the area, such as the Central to Eveleigh Corridor and Darling Harbour Live which will further increase foot traffic in the Midtown precinct.

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