Mirvac, John Holland to develop $800m Waterloo metro station project

Developer Mirvac and its joint-venture partner John Holland have won a tender to build the $800 million mixed-use Waterloo metro station in Sydney's inner south.

Under the plan, the consortium will construct the station, three towers and two mid-rise buildings above and adjacent to the station, which will form part of a $12.5 billion metro line running from Chatswood under Sydney Harbour to central Sydney and onto Bankstown.

The project is set to mark the revitalisation of the Waterloo precinct, which has been one of the last pieces of the puzzle for the redevelopment of the city's inner south.

Renders of Mirvac and John Holland's new Waterloo metro station and the integrated development above it.

The building costs for the contract are about $299 million and Mirvac will seek a 50/50 capital partner for its share of the project.

At least 5 per cent of the homes to be built as part of the project will be affordable housing and 70 apartments will be set aside for social housing. There will be new community facilities, retail and office space and two new public plazas at Cope Street and Raglan Street.

NSW Minister for Transport Andrew Constance said that as part of a value capture agreement, the NSW government will receive $106 million from the joint venture for the air rights to develop the site.

“This new station will transform the local area once it is complete, becoming a landmark in its own right,” he said.

Our vision for this precinct extends beyond the bricks and mortar.

Mirvac CEO Susan Lloyd-Hurwitz

Mirvac's chief executive Susan Lloyd-Hurwitz said Waterloo was a "once in a generation" opportunity to drive genuine social renewal.

"Our vision for this precinct extends beyond the bricks and mortar; we will be a long-term investor in Waterloo and we are wholly committed to realising the potential of this site to help drive meaningful social renewal and enduring value for the broader precinct," she said.

The Waterloo project comes amid news that Mirvac is also the front-runner to buy a $220 million land and apartment project at Willoughby in Sydney's north, which is the current home of the Nine Entertainment Co, the owner of this publication.

John Holland chief executive Joe Barr said Waterloo was a major milestone for his company. It is a double victory for John Holland which on Wednesday also won the contract to develop the $735 million Sydney Football Stadium at Sydney's Moore Park.

"This project will transform Waterloo and improve community spaces in the inner city for generations to come," Mr Barr said, adding that it would "make commuting easier, create jobs and improve community facilities."

Mirvac recently placed in the top 10 of the annual BDO survey, with the advisory group saying the company's total shareholder return was 49 per cent over one year and 71 per cent over three years, with an 8 per cent increase in net tangible asset per security to $2.50.

Mirvac shares were up 0.3 per cent at $3.21 in late afternoon trade.