Dexus plans $200m lifestyle hub for South Sydney

Dexus plans $200m lifestyle hub for South Sydney

8 June 2018

Commercial property powerhouse Dexus has unveiled plans to transform a business park near Sydney Airport into a $200 million business and lifestyle hub as it looks to grow its mixed-use development pipeline, reports the AFR.

Known as Botany Quarter, the project will incorporate more than 200 strata office, retail, industrial and storage units alongside cafes and restaurants in three buildings offering 24,300 square metres of space.

“Botany Quarter will reinvigorate the South Sydney area and create a much-needed lifestyle precinct, in the same way that The Grounds of Alexandria has done, for the enjoyment and benefit of both workers and the local community,” Dexus Chief Investment Officer, Ross Du Vernet said.

Dexus acquired the Botany Lakes Business Park, located in close proximity to Port Botany and Sydney Airport, at 2-13 Lord Street for $153.5 million in January 2015.

The announcement of Dexus’ Botany Quarter revamp comes as the group ventures outside of office and industrial property deals, developing some of its key inner-city landholdings as part of a $4.2 billion development pipeline.

The $10 billion-capitalised group has been expanding beyond its traditional base of office and industrial property in major cities by developing some if its key inner-city landholdings into mixed-use precincts as part of a $4.2 billion project pipeline.

“It’s important for Dexus to be able to create assets, and those assets aren’t necessarily just going to be office buildings,” Dexus chief executive Darren Steinberg said in March.

Dexus’ evolving project pipeline includes the $1.4 billion revamp of Brisbane’s Eagle Street Pier and the recent approval of a $426 million mixed-use tower in Elizabeth Street in Sydney.

The property group recently snapped up the Audi Centre complex in Brisbane’s Fortitude Valley for $91.2 million earlier this month, on a six per cent yield.

The redevelopment of the Botany Quarter business park comes as the suburb of Botany undergoes a transition from an industrial precinct to a residential and commercial hub.

Alongside the commercial, industrial and retail offerings, Botany Quarter will also include parkland and other amenities including a proposed on-site gym and childcare facility.