Crown Resorts nears $1bn mark on sale of Barangaroo apartments

Sales of the 82 ultra-luxury apartments that form the top of the $2.2bn tower are being billed as a silver lining for the under-pressure Crown.

The completed Crown Tower at Barangaroo in Sydne. Picture: Nikki Short

Once promoted as the realisation of James Packer’s dream for Sydney, Crown’s hotel, casino and apartment tower has defied the odds with the strong sales of its opulent units.

Sales of the 82 ultra-luxury apartments that form the top of the $2.2bn tower are being billed as a silver lining for the under-pressure Crown which on Thursday revealed that it had sold more than $870m worth of apartments in the tower, substantially up from the $650m in sales it reported one year ago.

Crown believes it has made “good progress” with its Sydney apartment sales but the embattled casino operator would not divulge just how many apartments it has sold in the past year, nor the size of each unit, nor the identity of the buyers. Apartments start from $9.5m for a two bedder.

“Crown expects a net project cost for Crown Sydney of approximately $1.1bn as a result of higher than expected apartment sales proceeds given strong buyer interest in the Crown Sydney apartments,” the casino operator said in a statement to the ASX.

Settlement of the apartment sales is expected to occur progressively from March through the balance of the calendar year, which will help to substantially de-lever Crown’s balance sheet, the casino operator said.

An artist’s impresion of an apartment lounge and kitchen in the Crown Resorts development at Barangaroo South.

Sale proceeds will initially be used to repay the $450m project finance facility, Crown said.

The final interior fit out of some of the apartments is expected to be completed by the beginning of March, allowing the likes of one buyer, investment banker Trevor Rowe, who has bought a three-bedroom apartment on the upper floors of the 71-floor tower fronting Sydney Harbour, to move in.

Apartments in the tower start at $9.5m for a two bedroom and two bathroom apartment, and Mr Rowe and his wife will relocate from the luxury Highpoint Tower in Sydney’s Millers Point which they have just sold.

Mr Packer was one of the first buyers in the complex, shelling out $60m for a two level apartment. It is understood the $100m penthouse is still on the market.