Charter Hall Group (ASX: CHC) plans to 're-energise' the iconic Chifley Precinct after lodging a development application for a new tower that will almost double the amount office space for the site, which overlooks the Royal Botanic Garden and Sydney Harbour.
If approved, Chifley South will add 50,000sqm of net lettable area to the central precinct, taking the total to 110,000sqm including the existing northern tower.
The proposed building was designed by one of Australia's oldest architectural firms, Bates Smart, featuring an additional podium space, a reactivated public domain at Chifley Square, retail, and world-class wellness facilities.
From a sustainability standpoint, the design targets a 6-Star Green Star Buildings v1 rating, in line with Charter Hall's commitment to achieving net zero by 2025.
Enabling works have already commenced, with construction of the main tower expected to start in early 2024. An estimated 1,500 jobs will be created in the construction phase. Upon completion, the end value of precinct is estimated to be $4 billion.
"This development is set to re-energise the iconic Chifley precinct and contribute to the vibrancy of the Sydney CBD. We look forward to partnering with Bates Smart and the City of Sydney to deliver a world-class building that provides a next-generation workplace and supports Sydney’s role as Australia’s leading global city," says Charter Hall managing director and group CEO David Harrison.
"As reflected in the DA, Chifley South will deliver the highest standard for environmental and social sustainability, security, smart technology, and wellbeing.
"Designed to meet the demands of our tenant customers, the development will foster collaboration, innovation, and efficiency, while our precinct strategy ensures a reinvigorated public domain, anchoring the business community in the heart of the financial CBD."
Pre-leasing activities are already well under way, with 16,000sqm pre-committed and with international investment bank UBS and Charter Hall itself secured as future occupants.
"We are confident that Chifley South will deliver on its leasing potential, with limited competition from new buildings planned in the Sydney CBD between 2024 and 2027," says Charter Hall Office CEO Carmel Hourigan.
"We continue to see a growing appetite for new, premium office buildings in line with the strong bifurcation of the office market, and Chifley South will be well positioned to absorb that demand."
A spokesperson for the Bates Smart describes 2 Chifley Square as a 'distinguished address that makes a positive contribution to the city skyline'.
"Our design creates an urban ensemble with Chifley North tower that simultaneously complements and respects it, while being clearly of the 21st century in terms of people amenity, workplace, and environmental performance," the spokersperson says.
"The new integrated ground-plane has a new double-height arcade between Bent Street and Hunter Street that opens the podium to the city with a sense of civic generosity. At the heart of this precinct is a centrally-located Urban Room that connects the grand entry lobby, business lounge, wellness, and retail spaces."
To facilitate new construction, the DA notes demolition of the southern portion of the existing podium and internal refurbishment works within the northern podium.
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