A tired segment along one of Sydney's iconic shopping and party strips, Oxford Street, is one step closer to receiving a major facelift, with developer TOGA Group and Sydney fund manager AsheMorgan this week submitting a development application for a $200 million mixed-use precinct.

Sydney investment house AsheMorgan, which last year bought three low-rise heritage leasehold properties at 56-76, 82-106 and 110-122 Oxford Street in Darlinghurst, between Oxford Square and Taylor Square, has teamed up with TOGA Group in a joint venture to create 7600 square metres of commercial floor space, a 75-room boutique hotel as well as laneway retail.