Low office occupancy rates in Sydney get a much-needed boost after private property developer builds world’s tallest hybrid timber tower in city center with backing from investment expert Merricks Capital was completed.
A $2 billion partnership with Milligan Group will facilitate construction of a 55-story mixed-use commercial tower at the corner of Pitt and Hunter Streets in central Sydney.
The 220-metre site will be adjacent to the Hunter Street Underground Station, which is expected to be completed in 2030.
Dan O’Donoghue, head of private credit at Merricks Capital, said the $465 million financing will put Sydney back on its feet.
“This is another step in the transformation of the City of Sydney and the development, worth around $2 billion when completed, will have strong cultural and economic benefits,” said Mr O’Donoghue.
Milligan Group founder James Milligan said the acquisition has been in the works for five years and will enable the development of world-class sustainable mixed-use office buildings.
“This is a new-generation sustainable office building. As employers encourage staff to return to the office after COVID-19, employee feedback is helping us reduce commute times, improve collaboration and lifestyles. It’s about working in high-quality, sustainable spaces designed for,” said Milligan.
Adrian Redlich, chief investment officer at Merricks, said the investment remained strong following an extensive risk assessment.
“We have worked closely with Milligan Group and other stakeholders to de-risk the project through positive planning outcomes, a clear path to facility repayment and the construction of a world-class office building.” He said.
https://thenewdaily.com.au/finance/property/2023/03/16/worlds-tallest-timber-tower-sydney-2030/ Building world’s tallest wooden tower in Sydney by 2030