After months of negotiation, the New South Wales Government has finally revealed Landcom’s plan to revive numerous underdeveloped sites in Newcastle’s CBD.
In a deal struck between government property and land developer Landcom and landowner GPT, four city blocks are set to be transformed into a combination of residential, commercial and retail space.
The $20 million deal grants Landcom two-thirds of GPT’s current holdings, with GPT maintaining the other third.
The former Lucky Country and Jolly Roger hotels are two of the four sites in line to be redeveloped in the city’s Hunter Street Mall precinct.
Demolition of the Lucky Country club has commenced, with construction due to start in February next year, which will see the site transform into developer Jeff McCloy’s $6 million commercial and residential haven.
Numerous plans have also been submitted for the redevelopment of the Jolly Roger hotel, including the plan for a 17-storey residential tower that is yet to be granted approval.
GPT’s head of investment Mark Fookes says that while the company supports Landcom’s development and acquisition of third party capital, GPT will not be contributing any capital towards the future development of the sites.
“The lack of commitment for significant infrastructure investment in Newcastle restricted GPT from delivering its proposed development scheme in 2009,” Mr. Fookes said.