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Construction on a new 14-storey commercial tower at 333 Kent Street in Sydney’s CBD, reportedly worth $300 million, is set to start next year following the signing of a joint venture (JV) agreement to deliver the project.
The property’s majority owner Glory Star has entered into a JV to build the tower with Sydney-based property developer Addenbrooke, which partnered with Phoenix Property Investors (PPI) to purchase a stake in the development.
Architectural firm WMK will design the 14-storey commercial building with 14,242sqm of lettable space between the existing heritage facade of the property and a new additional structure.
The build will involve the redevelopment of an existing 1980s office building, upgrading it to A-grade office space in the heart of the CBD’s evolving commercial western corridor.
A formal builder tender process will be conducted early next year to appoint the preferred contractor and a leasing campaign will commence shortly according to broker Knight Frank.
333 Kent Street has been designed with the post-COVID office environment in mind, with specific emphasis on smart systems and touchless technology, external breakout spaces, end-of-trip facilities and a ground floor food and beverage space.
“After looking for some time in the market for a suitable partner to deliver the project with, we are very happy with the result,” said Moon Xinye An on behalf of Glory Star which is majority owned by Australian Chinese developer Super Ocean Group.
“Addenbrooke will bring good synergy to the existing team with their development track record.”
Jessen O’Sullivan of Knight Frank said the JV partnership was brokered off-market in a timely fashion.
“It was a fairly quick process involving two like-minded parties coming together and sharing the same vision,” he said.
“This deal, and the pending development, is a real vote of confidence in Sydney CBD, which has seen a resurgence in activity since COVID-19 restrictions have recently eased in New South Wales, with many people coming back into offices.
“Rather than seeing a move away from the CBD from tenants, we are actually seeing the opposite at the moment, but there is flight to quality, with office workers wanting COVID-safe A-grade buildings, but also to be close to amenity, including restaurants, cafes, shops and bars for after-work drinks as they enjoy socialising again. This development at 333 Kent Street will tick all the boxes.”
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