ICD Property, Fortis launch projects worth $670m from city to suburbs

Developers are defying the market condition of rising interest rates, constructions costs and inflationary pressures with more than $670 million worth of projects being approved from the city to the suburbs.

The focus is on the hotel and apartment sectors, which are seen as providing better growth prospects over a longer time frame.

Renders of ICD Property’s planning submission for the $500m development at 372-382A Pitt Street, Sydney.

The largest is the $500 million complex at 372-382A Pitt Street in the city, where the Central Sydney Planning Committee approved plans submitted by Belingbak and Melbourne-based developer ICD Property for the redevelopment of a 58-storey tower.

Under the plans, there will be 297 hotel rooms, 30 residences and ground-floor retail with food and beverage outlets, entertainment and public art offerings.

The Concept DA was submitted in December last year, with ICD Property and Belingbak employing Woods Bagot and Urbis to undertake early design and planning works. Once approved, there will be a design competition and the appointment of a hotel operator.

The rare development opportunity, estimated to have an end value of $500 million, was strategically acquired by Belingbak, which amalgamated eight separate properties over 12 months to create the singular 1,300 square metre opportunity in Sydney’s burgeoning technology precinct.

Sydney has always been one of the most internationally recognised cities in the world with strong demand for visitor accommodation

ICD Property deputy managing director Sal Quah

ICD Property deputy managing director Sal Quah said the focus was on launching the design competition in the coming months and submitting a detailed development application, aiming for early 2023.

“Sydney has always been one of the most internationally recognised cities in the world with strong demand for visitor accommodation, particularly in the CBD among public transport access and amenities,” he said.

“Following Australia’s post-COVID reopening of travel earlier this year, we have already seen tourism slowly grow stronger, with the industry predicting continual growth over the coming years.”

He said Sydney CBD residences had become increasingly sought after recently, given the rarity of CBD residential developments.

This is ICD Property’s second Pitt Street development, following their redevelopment of Sydney’s City Tattersalls Club that will transform the 127-year-old club into a 50-storey mixed-use tower comprising a 101-room hotel and 241-high end residences.

ICD Property directors said they had long been monitoring Sydney’s construction and property markets, planning projects accordingly.

Belingbak founding director Jack Montgomery said that as Sydney evolves on the global stage, “so to will this building, providing an exemplar benchmark, a feeling of connection and a place loved by tourists and locals alike”.

In Sydney’s eastern suburbs, ​Fortis has acquired a site and secured development approval for a premium residential $170 million project.
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​Fortis bought the 2A James Street for $50 million after 12 months of negotiations with individual owners. The 14 lots will now be consolidated to create a 3,500sq m area.

Fortis snapped up a 3500sq m site in Woollahra for $50 million with plans to redevelop.

Pallas Group is the parent company of real estate financier and investment manager Pallas Capital and property developer Fortis. The expected end value of Fortis projects under construction or under a planning proposal is $4 billion nationwide.

“The deal is the largest ever land consolidation in Woollahra and now the largest privately held parcel of land in the suburb,” Fortis director Charles Mellick said.

“This is the first time off the plan apartments of this scale are being offered in Woollahra, also marking the biggest sqm regeneration in this suburb. Our aim with this project is to be sympathetic to its heritage and context, ensuring that the existing buildings are restored.”

Within the design, the 1880s theatre will be restored by Mim Design and converted into a single trophy residence, with an expected end value of $20 million. ​The interiors of the other residences are being undertaken by Alexander & Co.