$100m redevelopment plan for Oxford St, Darlinghurst strip
A huge chunk of shop and office spaces along Oxford St at Darlinghurst — some of which has been derelict for more than 20 years — will be transformed as part of a proposed development.
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A huge slice of rundown property on Sydney’s most colourful shopping strip is set to undergo a major renovation after potential buyers offered at least $100 million.
A 14,508sq m chunk of shop and office spaces along Oxford St at Darlinghurst — some of which has been derelict for more than 20 years — will be transformed.
The frontrunners to secure the space are boutique financiers and property managers Ashe Morgan.
Two well-placed sources confirmed Ashe Morgan are the firm most likely to take the property from the control of City of Sydney and “transform these buildings under a long-term lease, while being sensitive to heritage value”.
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Lincoln Blackledge from Stonebridge Property Group said he can’t comment on the deal because of confidentiality but added “some documents are going to be signed any day now”.
City of Sydney councillor Dr Kerryn Phelps said: “The city does a lot of good things but property management does not appear to be one of them.
“It’s extremely important that the city end of Oxford St is revitalised.
“The Paddington end of Oxford St — which is under the control of Woollahra Council — has experienced a revival. This area has not.
“The T2 building was left to rot and it appears that’s just what happened on Oxford St.”
The deal would see Ashe Morgan secure a 99-year lease over three large buildings at 56-76, 82-106 and 110-122 Oxford St.
In 2017, Ashe Morgan made a $150 million investment in Harbour Town on the edge of Melbourne’s Docklands.
In the 2017-18 financial year City of Sydney raked in more than $73m from rental income.
City of Sydney declined to comment other to say: “There is currently no agreement in place.”
Ashe Morgan did not respond to repeated requests for comment.
One of the 190 developers who expressed interest in the commercial area said: “I know that the parties had reach at least $100m.”
He said the area’s sex shops made him pull out of bidding early.
"Oxford St in that part is all cheap food and no charm,” he said.
“The only thing developers could do is maybe get one more level of office space.
“I can’t see all the sex shops going. It will always be not-great retail.
“People are happy to live above sex shops but retailers are not happy to have the shop adjacent to a sex shop.”
The prospectus released last year suggest the buildings could be used for a hotel, education, retail, or entertainment.
Liberal councillor Christine Foster said “the process has been tortuous” since renovations were first mooted in 2011.
“The Lord Mayor (Clover Moore) has dragged her feet for nearly a decade while this once bustling precinct has been forced to its knees and is now littered with shuttered shop fronts, empty offices and small businesses who are struggling to stay afloat,” she said.
“If the Lord Mayor can’t execute any plan over four terms of government, she’s offering nothing to the businesses and residents of this commercially and culturally important area.”
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