Tim Gurner seals the deal in Sydney CBD as city living takes off

The luxury apartment king is expanding as top end residential projects defy the forces slugging the office market.

Multibillion-dollar developer Tim Gurner plans to deliver a new level of luxury to Sydney as he unveiled the acquisition of a trophy site in Kent St in the CBD for about $200m.

The move, flagged in the Australian, will see him replace the ageing office tower at 189 Kent St with a $800m 34-storey two-tower landmark on the doorstep of Barangaroo and Sydney Harbour.

The Kent St acquisition is the first seed site to be backed by the developer’s $2bn Build-to-Sell development fund, which is backed by a global institutional investor.

The 1,195sq m site, which adjoins the Barangaroo precinct, houses a commercial office tower that was built in the 1960s. Mr Gurner will leave the tenants in place until their leases expire.

The site recently won planning approval for a residential development after a lengthy approval process by the site’s vendor Barana Group, which has held the asset since 2002.

The play is the second transaction Mr Gurner and Barana Group have made together, after they partnered in 2018 to develop St Kilda’s former Novotel site into one of Melbourne’s most exclusive addresses, Saint Moritz.

The Kent St deal is instead a direct acquisition by Mr Gurner, and will now be developed by the Melbourne player.

Tim Gurner in his new luxury development in St Kilda. Picture: Aaron Francis

The purchase is part of a larger strategy for Mr Gurner, which is expanding its significant $10bn national pipeline of both build-to-sell and build-to-rent assets across Australia.

Mr Gurner sees the chance to deliver a Saint Moritz-level of luxury in one of Sydney’s crowning development sites. His recently completed ultra-luxury development in Melbourne’s St Kilda will be the blueprint for the style and service of the Kent St project.

“Sydney and this key strategic site in particular is crying out for an ultra-luxury offering like Saint Moritz that transports its owners into a world of luxury and service above anything else in the country, inspired by the best hotels around the world,” he said.

“This site is positioned within one of the most expensive and luxurious locations in Australia, so we plan to take what we know from Saint Moritz and apply it on a whole new scale, to offer the market something that is completely unique in terms of design, luxury, service and amenity.”

The interiors will have the firm’s trademark focus on ultra-luxury design, with expansive floor plans to maximise the panoramic views of Sydney Harbour and a new level of finish and materiality to create a grand sense of opulence.

The site has an existing approval in place for two towers, ground-floor retail, restaurants and bars, a health and wellness component, and carparking. Mr Gurner will now seek small amendments to the approval to reduce the number of apartments and increase the amenity provisions, in line with its vision for the site.

FJC Studio has been appointed as architect, having won a competitive design competition between local and international architects.

The deal was brokered by Justin Brown, Tim Rees and Ben Wicks of CBRE.

“Kent Street represents one of the most prestigious development sites in Sydney; from the moment we were introduced to the site we knew we had to acquire it and do something very special in a market that is crying out for ultra-luxury stock,” Mr Gurner said.

Mr Gurner is bullish about the opportunity, despite the challenges besetting the building industry.

“We’re certainly across the challenges the development industry is currently facing in regard to construction and interest rates. We’ve taken a conservative view to pricing and feasibility and feel supremely confident on the fundamentals of this site and its success.”