Mirvac to bring partner into $2bn Harbourside revamp

Big institutions are vying for the project, billed as the last piece of the Darling Harbour puzzle.

Mirvac has kicked off building on its mixed-use redevelopment of Sydney’s Harbourside shopping centre, saying it is likely to take on a partner for its overhaul of the $2bn precinct.

The move is part of the property group’s expansion in funds management, where it is seeking to grow a roster of blue-chip clients to back its projects.

The company has already won the capital partners this year on its office portfolio, with Japanese company Daiburu backing a tower in Melbourne, and, on the industrial front, it picked up the support of superannuation fund ART.

At a ceremony to mark the start of work on the Darling Harbour project, Mirvac chief executive Campbell Hanan flagged that the group would take on a capital partner.

“Most likely, we will get a partner,” he said. “We’re certainly entertaining interest from lots of parties.

“This is the final piece of the puzzle of redefining what Darling Harbour is,” Mr Hanan said.

“Given the iconic nature of the site and the development, it’s of interest to capital.” The project appealed to Mirvac due to its sophisticated design and mix of offices, retail and apartments, with the firm aiming to replace the ageing centre it bought a decade ago with a unique project.

“This is an iconic tourist zone; the retail response needs to appreciate that,” Mr Hanan said. “The style of the retail will be very different to the style that was here before.”

An artist's impression of Mirvac's redevelopment of Harbourside, Darling Harbour, Sydney.

The redevelopment includes about 265 apartments in a 43-level tower on the fringe of the Sydney CBD, where there are few comparable projects.

Mirvac CEO, Development, Stuart Penklis, flagged big ambitions for the residential tower that will sit on Sydney Harbour. He said the post-pandemic period was driving a resurgence of apartments.

“The experience that people had in inner city locations … was a huge factor to people remaining in city centres,” he said. Residents are now upgrading to larger apartments rather than shift out to the suburbs.

Mirvac's redevelopment of Harbourside, Darling Harbour, Sydney.

The developer is planning a mix skewed to larger three and four-bedroom apartments. “We see that opportunity to really fill that gap in the market for luxury apartments and luxury apartments for families,” Mr Penklis said.

The $2bn revitalisation project is part of the overall $15bn Western Harbour rejuvenation that has been underway since the International Convention Centre was finished.