Oxford to develop build-to-rent tower above Pitt Street Metro

Oxford to develop build-to-rent tower above Pitt Street Metro

20 September 2019

Oxford Properties will develop Sydney CBD’s first purpose-built build-to-rent tower as part of a major twin-tower development.

The build-to-rent apartment tower and office block will be built above the new Pitt Street Metro station. Both towers are expected to be completed by 2024.

The move brings the build-to-rent concept to the heart of Sydney and potentially changes the game in Australia, where few large developments have been built.

Mirvac is building at Sydney Olympic Park and near Melbourne’s Queen Victoria market but is yet to open a facility. A UBS/Grocon venture have the Parklands precinct in the Gold Coast but this will be one of the first purpose-built facilities nationally.

Oxford and CPB Contractors, which will deliver the station, were part of a consortium assembled by Grocon, beat Lendlease to the finishing line.

The development will comprise two 39-storey office and residential buildings designed by renowned architects Foster+Partners and Bates Smart. The 39-storey premium office tower and retail plaza at 252 Pitt Street will be designed by Foster+Partners in collaboration with Cox Architecture. The large-scale build-to-rent residential building, designed by local architects Bates Smart, will have about 230 apartments and premium amenities over 39 storeys.

Oxford Properties, the real estate investment arm of OMERS and one of Canada’s largest pension plans, entered the Australian market late last year through its $4.5 billion take of Investa Office Fund (renamed Oxford Investa Property Partners).

The NSW government awarded the $463m contract to the consortium and as part of a value capture agreement the government will receive $369m from the consortium for the air rights to develop the buildings, notes The Australian.

 “We are delighted to be partnering with Sydney Metro and CPB Contractors to create a landmark project that will add to the vibrancy of Sydney’s CBD, create new jobs and provide superb new rental options for Sydneysiders,” Oxford’s director of Australian development Ian Lyon said.

The appointment confirmed on Tuesday sees CPB contractors, the construction arm of CIMIC Group, work with Oxford Properties on the design and construction of the two new 39-level towers.

CIMIC Group chief executive Michael Wright said his group’s revenue for the towers component of the project would be “confirmed at contract execution”.

Amenities will include a restaurant and bar, lap pool, indoor-outdoor fitness centre, fully equipped gym, cinema, and rooftop entertaining area.

Sydney Metro is expected to deliver 31 metro stations and more than 66 kilometres of new metro rail by 2024.