An official development application for the 39-storey office tower forming part of the Sydney Metro Pitt Street over-station development has been lodged.
It’s the second DA submitted by Canadian giant Oxford Properties Group for the corner of Park and Pitt streets, following the lodgement of its build-to-rent residential south tower last month.
The group says construction is expected to kick off on the north tower in late 2021, pending approval.
Sydney Metro named Oxford as lead developer and equity investor for the two towers above the new Pitt Street metro station in September 2019.
Oxford Properties’ Nellie O’Keeffe says the lodgement takes place at at a time when the role of office space is “quickly evolving”.
“We have carefully considered the health, wellbeing and performance needs of office occupiers,” O’Keeffe said.
Recent JLL office vacancy figures show Sydney vacancy sitting at 7.5 per cent, with all CBD office markets across Australia recording negative net absorption and increased vacancy during the end of the first wave of Covid-19.
Details of Oxford’s latest tower, designed by architects Foster and Partners and Cox Architecture, include more than 47,800sq m of office space, and a further 1,290sq m of retail space, food, beverage and licensed restaurant space.
Investa Property Group is involved as co-development manager on the Pitt Street project, while Oxford’s consortium partner CPB Contractors is behind the delivery of the station.
Nearby, developer Han’s Group has lodged plans for its own twin tower development, a pair of 80-storey skyscrapers in Sydney’s CBD spanning Pitt Street and Liverpool Street.
The $727 million Han’s proposal includes a hotel and up to 600 apartments, with the construction budget for the mammoth two-tower development costing around $450 million, according to planning documents.
Oxford’s Australian head Alec Harper says the group is targeting a 6-star Green Star rating, with the project an opportunity to use proceeds from its non-core Australian asset sales last year to grow its presence in the market.
Oxford, the real estate arm of Canadian pension fund giant OMERS entered the Australian market in late 2018 with its $4.5 billion takeover of Investa office fund, quickly offloading some of the former Investa fund’s assets.
The group says it plans to complete both the Pitt Street-based build-to-rent and office towers in 2023, with the scheduled metro services to begin in 2024.