Oxford Properties Group and its Australian partner, Grocon, have been chosen to develop an office and build-to-rent (BTR) project in central Sydney.
The end value of the project has not been disclosed, but sources said it would be upwards of A$1bn (€621m).
The NSW state government selected the Grocon consortium, which includes Oxford and CPB Contractors (owned by CIMIC Group, which is ultimately controlled by Spanish construction group ACS).
Oxford will be lead developer and equity investor for the project above Sydney’s new Pitt Street Metro Station.
The Sydney project, which will deliver 65,000sqm of space, will comprise a 39-storey premium office tower and retail plaza at 252 Pitt Street, together with Sydney CBD’s first purpose-built 39-storey BTR building of approximately 230 apartments.
Construction of the over-station development is expected to begin in 2021, with the residential tower scheduled to complete construction in 2023 and the office tower in 2024.
Ian Lyon, director of development Australia at Oxford Properties, said the development played to what he called “two of our highest-conviction global investment themes” – increasing Oxford’s exposure to the Asia-Pacific region and growing its multifamily portfolio.
Oxford entered the Australian market in December 2018 through its A$4.5bn take-private play for the Investa Office Fund, which owned a 19-asset office portfolio across Australia.
In a separate announcement, CIMIC said it had been selected to build the new metro station and that the contract would generate revenue of A$463m to CPB Contractors for design and construction.
