Prolific Sydney developer Time & Place has acquired a historic Surry Hills building for $110 million and plans to transform it into apartments.
With backing from billionaire businessman James Packer, Time & Place has bought 47-97 Marlborough Street, the original David Jones department store warehouse and factory building.
The developer partnered with NPAC, an investment firm founded by chief executive Todd Nisbet—a former Crown Resorts executive until he resigned amid bullying accusations two years ago, according to media reports at the time.
Sitting on land of the Gadigal people, the 3413sq m site was put up for sale in May this year and was expected to sell for more than $100 million.
Time & Place plans to adaptively reuse the Marlborough House building, which was built in two stages between 1914 and 1934, under plans submitted via the NSW Government’s State Significant Development pathway.
Time & Place founder Tim Price said the team was up for the challenge of reminagining the heritage project.
“There is something so tactile about taking a building that already has so much history and repurposing it for the next 100 years,” he told The Urban Developer.
“Construction costs remain high. But by employing an adaptive reuse strategy, we can be creative with the approach to the build and unlock significant value while keeping the bones of a building in place.”
The developer is proposing 150 apartments for the site, of which 26 will be affordable, despite its office potential.
According to the JLL listing for the site, the asset is 97 per cent leased and is in “Australia’s best performing office market”. Surry Hills had a 6.8 per cent vacancy rate as of the first quarter of 2024, compared to 14.2 per cent for the Sydney CBD as a whole.
The project’s gross realisation value is still being estimated but early forecasts place it at around $500 million.
Demolition work was slated to beging in 2027 and completion was likely in 2029 pending approvals, Time & Place said.
“The acquisition of Marlborough House firmly aligns with our expansion strategy which is to have prominent landholdings and projects across industrial, commercial and residential in both Sydney and Melbourne,” Price said.
Surry Hills is experiencing a “coming of age”, according to Price, who said the latest project would contribute to its evolution.
The planning pathways in Sydney had improved dramatically in recent years, Price said, and “we are keenly assessing more opportunities within key suburbs of Sydney to deliver much needed supply”.
Other property plays to backed by Packer of late include a residential revamp of a former nursing home in Melbourne’s east, and supporting Orchard Piper at Toorak.
Time & Place, meanwhile, has defied industry headwinds, securing approval for a Manly shoptop and a $150-million Glen Iris residential project in the past six months, as well as appointing a builder for its 27-storey Flinders Street tower.
