AsheMorgan and MEC reveal plans for city retail icon

The pair will overhaul the well-known centre in the heart of Sydney’s CBD.

AsheMorgan and MEC Global Partners Asia will develop a new podium at 60 Margaret Street, Sydney

Property funds house AsheMorgan and its Japanese investment partner MEC Global Partners Asia have won approval for a scheme that will see them demolish and rebuild the podium levels of 60 Margaret Street, known as MetCare Centre, in the Sydney CBD.

The pair said their concept would breathe new life into the property by developing a contemporary podium that would reinforce the public realm streetscape improvements being undertaken by the city.

They picked up the property, which comprises 40,726sq m of office space and a retail component of 6407sq m, from the listed Mirvac and US private equity firm Blackstone.

They are looking to capitalise on its premium location and direct access to Wynyard station, as well as the substantial land holding in the core of the Sydney CBD. They paid about $777.2m to buy the 39-storey office tower and MetCare Centre last year.

In a nod to the success of luxury retailers in the city, more than 2000sq m of flagship retail space will be created, reinforcing the George Street retail spine and bringing new retailers to the precinct.

An artist impression of what the upgraded centre will look like.

The existing food court will be upgraded and specialty shops will be remixed to ensure a sustainable footing for the 7000sq m of retail in the property.

A new three-storey lobby is being created for the office tower and will also service the 5200sq m of new premium office space in the new podium.

The precinct is also designed to complement the upgraded George Street. The scheme will include a new public piazza opposite Wynyard Park, an upgraded laneway link between Margaret and Jamison streets and an enhanced connection to Wynyard station.

AsheMorgan principal Alton Abrahams said the scheme offered a “once-in-a-generation opportunity to comprehensively regenerate the property that supports the City of Sydney’s vision for George Street and compliments nearby investment in Wynyard station and the new Hunter Street Metro West Station”.

The revamped centre has been designed to compliment upgrades in the surrounding area.

MEC Global Partners Asia head of Australia Luke Tarrant said the development would make an environmental contribution by allowing the embedded carbon in the 40,000sq m tower to be retained, revitalising the building for decades to come.

Upgrades to existing lift and mechanical systems accompanying the redevelopment are expected to improve the building to a 5.5 star NABERS energy rating, lifting it from its present 4.5 star rating. This would also reflect a brown to green strategy of property development.