Roberts Co unit wins Sir Stamford luxury revamp job in Sydney as administrators chase debts

Sydney’s Sir Stamford Circular Quay faces wreckers as apartment boom takes hold. But its choice of partner is controversial as other units of the builder set up by tycoon Andrew Roberts still face demands from creditors.

The Sir Stamford at Circular Quay in Sydney will be demolished to make way for a new apartment tower.

The surviving arm of the Roberts Co building empire has been lined up to demolish the Sir Stamford Hotel at Sydney’s Circular Quay and replace it with a luxury unit tower.

The move is the brainchild of finance house Metrics Credit Partners, which bought the site from troubled developer Jean-Dominique Huynh last year for about $265m.

The move could spark controversy as much of the building business founded by tycoon Andrew Roberts remains in administration, with only the NSW arm, bought by Middle Eastern company Arada, still operating.

The hotel’s site near the Sydney Opera House has long been billed as one of the prime residential locales in Sydney’s dress circle, and a new 16-storey develop­ment is now slated to neighbour the record-breaking Opera Residences and nearby skyscrapers, including Lendlease’s One Circular Quay.

But the site has been beset by difficulties, with finance house Metrics buying the hotel late last year as plans by Mr Huynh’s JDH Capital operation crumbled.

His business had problems on other projects. JDH Capital’s business was stuck with about 20 unsold apartments in its redeveloped Sirius building in The Rocks, and Metrics also called receivers into the $300m Nautique apartment block in Rushcutters Bay in Sydney’s eastern suburbs earlier this year.

JDH Capital had bought the Sir Stamford for $210m two years earlier from Singaporean magnate CK Ow’s Stamford Land. But the latest sale also reflected the debts that had been accrued to Metrics.

The Sir Stamford at Circular Quay in Sydney.

Roberts Co had been linked to the project when Metrics took control. But troubles at its Victorian arm resulted in that part of the builder’s operations falling into the hands of administrators McGrathNicol in March. The unit had debts of about $272m, and four large projects were stalled.

The problems dragged on the overall business and the NSW arm was sold off to Arada, which hopes to resuscitate the brand, partly by taking on the high-profile project. But the job has been further complicated by Roberts Co’s holding company also going into administration owing more than $100m, with FTI Consulting probing Mr Roberts.

He has incurred heavy losses and had flagged providing a deed of company arrangement covering employees. Some industry sources have questioned this week whether it would be provided. But a spokesman said the “DOCA is still being worked on ahead of the next creditors meeting and will include provisions for employees”.

The Arada-controlled Roberts said it had been nominated as development manager to get the site up and running, aiming to capitalise on the city’s luxury apartment boom.

JDH Capital won approval for a $183m project on the site of the Sir Stamford Hotel.

Under the Metrics plans, the hotel overlooking the Royal ­Botanic Gardens will be demolished and the new ultra-luxury apartment tower will be built. Roberts Co said it would have “uncompromised” views of Sydney Harbour and a top position on the city’s “premier residential boulevard”.

There will be 68 apartments, with construction slated to start in the first quarter of next year and take about 28 months.

Metrics Credit Partners managing partner Andrew Lockhart said the company was “proud to be delivering this landmark project with a vision to revitalise one of Sydney’s most prized locations, capitalising on its iconic views while respecting the area’s rich history”.

“We are driven by the opportunity to help reshape Sydney’s CBD into a world-class city precinct and, through the Macquarie Street development, there is an opportunity to set a new benchmark in high-end residential development,” he said.

Mr Lockhart said Sydney was Australia’s most sought-after property market and demand for residential property remained strong. “With interest rates falling and inflation moderating, this development will be a compelling offering,” he said.

There will also be a full restoration and refurbishment of the adjoining Health Building into a premium dining and leisure venue on Macquarie Street.

Roberts managing director, Australia, Emma Shipley is bullish about the project.

“We look forward to delivering this exciting project and delighted to have been selected to provide the full suite of development and construction services to the project. Being awarded a project of this calibre is a testament to our team and the capabilities at Roberts,” she said.

Creditors that have lost out in the Roberts Co collapse want to ensure that they are paid. Consultant Randell Fuller called out the importance of ex-employees who had worked on the scheme being paid on social media.

“It’s also the result of the work of people who are now creditors. Let’s hope that this win provides an avenue to the payment of those people. This will be a test of the integrity of Roberts Co,” he wrote.