First Sponsor invests in City Tattersalls Club redevelopment

First Sponsor invests in City Tattersalls Club redevelopment

29 November 2019

Singapore-listed developer First Sponsor Group has struck a joint venture investment in the $200 million mixed-use redevelopment of Sydney’s City Tattersalls Club.

The group will make an equity investment into the project alongside ICD Property and the City Tattersalls Club, the initial developer and owner of the property, and provide development expertise towards the project.

Singaporean companies have a strong presence as both investors and developers in Australia, but have been relatively quiet on the residential development front after the apartment boom ended.

First Sponsor, which has developments in the Netherlands, China and Germany, will also become a lending partner and would become the project’s sole construction financier, providing debt for the delivery of the project.

“Receiving construction funding from First Sponsor will allow for a more efficient and streamlined process with works on the City Tattersalls Club earmarked to commence following Stage 2 approval,” ICD deputy managing director Sal Quah said.

Plans to redevelop the City Tattersalls Club, one of the largest and oldest clubs in Sydney, were approved a few weeks ago after many years of planning.

The club’s revitalisation, includes a new 100-room hotel, 246-apartment tower, refurbished retail spaces, restaurants and a new co-working hub.

First Sponsor Group chief executive Neo Teck Pheng said the company was honoured to have the opportunity to work with ICD Property and the club on such a unique development, with CBRE assisting on the deal.

The First Sponsor/ICD Property joint venture and the club are preparing to undergo a design competition process with the City of Sydney in 2020, where a prestigious line up of architects will vie for the club design.

ICD Property and the City Tattersalls Club submitted the application for its $200 million project last year, following a rejection of an earlier proposal at the 194-204 Pitt Street Sydney address.

Private lending continues its run in financing developments, with First Sponsor now joining local financier MaxCap and Goldman Sachs in providing development loans to Melbourne-based ICD Property’s projects.

In September, MaxCap and Goldman Sachs agreed to provide first mortgage construction finance for ICD Property’s Aspire Tower, scheduled to rise up 65 storeys at 299 King Street near Flagstaff Gardens.