Packer backs $110m Surry Hills site play as apartments loom for Marlborough House

The billionaire has become a canny property investor in the emerging luxury apartment space.

A property developer backed by James Packer has snapped up a historic Sydney site for redevelopment. Picture: Jeff Rayner

Property developer Time & Place, with the backing of James Packer’s property investing company, has snapped up the historic former David Jones warehouse building in Sydney’s Surry Hills for $110m.

The property, known as Marlborough House, was held for 50 years by private vendors and Time & Place now plans to transform it into a top-class residential development.

The design will focus on adaptively re-using the historic complex while paying homage to the original art deco building, as about 150 apartments are added to the site.

There will also be about 26 affordable dwellings, helping to address the squeeze on inner city living.

The deal comes as Surry Hills is transformed by new restaurants, bars and apartment projects, which are turning the once grungy area around, with developers circling more sites.

Time & Place director Tim Price said the developer was privileged to be involved with such a historic building in the increasingly vibrant precinct. He intends to transform the site into a luxury residential enclave which uses the bones of the existing building.

The acquisition is part of the company’s move to expand in NSW, where it is focused on high end design-led developments.

Time & Place, backed by Mr Packer, is already undertaking a number of developments in Sydney, including apartments in the beachside suburb of Manly and is also making a play to redevelop The Chimes apartment building in Potts Point.

The property was sold via real estate firms JLL & The Agency. The site at 47-97 Marlborough Street was chased by a number of developers keen to cash in the area’s boom.

The holding of 3413sq m is one of the largest in Surry Hills and most of the existing building can be kept as the redevelopment can be done on part of the site.

Four residential future development options for the site have already been identified by renowned architect Andrew Andersons, subject to council approval.

The existing building is also almost fully leased, giving Time & Place income while it works up its scheme. The block was built in two stages between 1914 and 1934 and is close to the fashionable Crown Street dining and fashion precinct.