Stockland takes a fancy to Piccadilly redevelopment

Stockland is looking to put its stamp on one of the city’s best locations as new towers spring up around it.

Stockland Piccadilly artists impression

Listed property giant Stockland is proposing one of Sydney’s largest commercial developments with an overhaul of the Piccadilly Centre that will make it into one of the city’s top office and retail com­plexes.

The group’s plans for 133-145 Castlereagh St will create a unique building sporting Hyde Park views with the latest in office technologies, with the company planning a $1.5bn development spend.

The long-awaited proposal would result in the existing three buildings on the site, known as the Piccadilly Centre Complex, being transformed, with two office towers of 14 and 31 storeys to make way for the new complex.

A new 36-storey office tower would be developed above a retail podium, which would include Wesley Mission, the Unity Church charity, facilities at lower ground level, together with basement carparking and associated facilities.

The site is owned by the Uniting Church in Australia Property Trust (NSW), which is working with Stockland. Wesley Mission operates on the ground and basement levels of the site including the Wesley Church, Lyceum, Wesley Theatre and some office space.

Stockland, acting on behalf of the landowner, has been in talks with the City of Sydney Council since 2019 on ways of upgrading the quality of the Piccadilly Complex.

The City of Sydney prepared the proposal with changes that would allow the delivery of 103,000sq m of floor space in the new tower, which would include about 99,000sq m of commercial space split between 93,000sq m of office floor space and 6000sq m of retail floor space, and 4000sq m for Wesley Mission.

A podium with a street wall ranging from three to 10 storeys to match adjoining building podiums would also be built. The plans will generate about 45,000sq m in additional employment floorspace on the site.

Neighbouring sites are also being redeveloped. The northern boundary of the site adjoins two sites that are being overhauled. The David Jones Market St building is being undertaken by Scentre and Cbus Property and the City Tattersalls Club works are being done by Singapore-based First Sponsor Group and Melbourne-based developer ICD Property. Both feature new towers above the existing buildings.

Stockland chief executive Tarun Gupta said workplace was an asset class in which the company had a long-term “high conviction and belief”.

“We see a continuing need, even in very much a flexible and hybrid working environment – which is what will be emerging in the future – a great need for organisations to bring people together,” he said, citing the benefits of collaborating, new ideas, creating a culture, learning and development.

Stockland is following a hub-and-home strategy, allowing its staff to have a flexible working environment, where they can use the best of offices and home offices. “That’s what we promote, and that’s what we believe is the way of the future,” Mr Gupta said.

The company is also planning a major tower at Walker St in North Sydney and is developing its major Macquarie Park land holdings. “All are part of our new workplace strategy of how we create the workplaces of the future,” he said.

Stockland group executive and CEO commercial property Louise Mason said the proposal was proceeding through council assessments. “We’re excited about the opportunity to be one of the first prominent buildings in Sydney’s CBD to design a new workplace that responds to the post-Covid working world,” she said.