[+] Charter Hall’s Bid to Build Second Chifley Tower

One of Sydney’s most iconic and expensive blue-chip CBD properties is in line for an audacious transformation. The City of Sydney Council will consider drawing up new planning guidelines for the iconic $1.8-billion 2 Chifley Square to allow a second tower to be built on the landmark site. It is located on one of Sydney’s most expensive blocks of land, which was bought by the Bond Corporation in 1988 for $306 million. Charter Hall bought a 50 per cent stake in 2 Chifley Square in 2019 for about $900 million from Singaporean sovereign wealth fund GIC, and wholly manages the asset. In a statement to the council, Charter Hall chief executive David Harrison said the project was a “unique privilege and opportunity to help a vital part of Sydney’s global financial district be the best it can be”. “It’s an opportunity to go further in making it a globally best-in-class workplace, a welcoming and memorable city experience and an iconic world-class addition to Sydney’s skyline,” Harrison said. “It is a vision informed by the aspirations and needs of our community and consistent with the council’s ambitions for this great city.” Harrison said Charter Hall’s proven track record of delivering placemaking projects including 333 George Street in Sydney and 555 Collins Street in Melbourne, would inform its work on the 2 Chifley Square project. The City of Sydney Planning Committee is due to meet Thursday to consider the amendments to the Sydney Local Environment Plan 2012 and the Sydney Development Control Plan 2012. ▲ The southern Chifley tower would be delineated from its taller twin atop the shared five-storey podium. Image: Architectus ‘An evolved Chifley’ New York-based architects Kohn Pedersen Fox designed Chifley Tower, which was Sydney’s tallest skyscraper until 2019, reaching 244 metres. Architect William Louie said it was “conceived as a building that would stand among the most recognised and timeless pieces of architecture in the world”. The curved glass façade podium on the eastern side of the building was designed to represent a glass sail, inspired by Alan Bond’s celebrated America’s Cup victory in 1983, while the commercial tower emulates the iconic art deco skyscrapers of New York. According to Charter Hall documents, the aim of the second Chifley tower is to future-proof the property and position it as a precinct of influence and excellence that serves “top-tier customers” and the broader community. “Chifley will offer many experiences in one place, promising to inspire and motivate talent who demand a frictionless, modern, healthy, flexible workplace and will be a welcoming and accessible place for people to visit. “An evolved Chifley will enable more choices and deliver new and different ways of working in a post-Covid world.” ▲ Chifley&#x27;s second tower would be ‘sensitively designed to complement existing buildings within the CBD skyline’. Image: Architectus Sensitive addition to urban landmark Ethos Urban requested a site-specific planning proposal in September to allow Charter Hall to increase its gross floor area with the addition of another tower on the southern end of the five-storey podium, replacing 377 commercial car parking spaces. Architectus was engaged to design the second Chifley tower. The lower levels of the additional podium would include retail, and food and beverage outlets, while the upper floors and tower would be dedicated to commercial space. The total net leasable area currently is 68,875sq m, and Charter Hall hopes to add a further 44,108sq m, an additional 60 per cent commercial floor space. The building is currently at 98.3 per cent occupancy. According to the council documents, the planning proposal would insert new site-specific clauses to deliver an extra 44,108sq m of floor space, restrict development to non-residential uses, and allow development consent to be given contingent on the removal of the commercial car park. “The proposed maximum planning envelope includes a podium up to 61m high, potentially comprising approximately 37 storeys, and a commercial tower above, to a height to not exceed The Domain Sun Access Plane,” according to documents. “The tower envelope includes an 8m minimum setback to Hunter Street, a 2m to 6m setback to Chifley Square, and varying northern and eastern setbacks.” ▲ The second tower proposes a further 44,108sq m, adding 60 per cent commercial NLA to the site. Image: Architectus. The council will submit a development control plan alongside the planning proposal amendment for gateway determination next month, with a public consultation period mooted for February 2021. According to Architectus’ urban design report, the project would deliver in-demand premium-grade commercial floor space in the heart of the financial district. “Charter Hall has a vision to bring together a diverse clientele which range from high profile international companies to emerging enterprises,” the report said. “It is a sensitive addition to the urban landmark known as Chifley square … the arrival of the new Metro station will make Chifley Square a key focus as workers make their daily commute, Chifley will be a new gateway into the city’s financial district. “Coupled with the rare opportunity to re-invigorate one of Sydney’s most valuable and iconic civic spaces, the redevelopment of 2 Chifley Square is an important city-shaping project capable of delivering fantastic amenity outcomes for the precinct. ▲ Charter Hall wants to build a southern tower on the site at 2 Chifley Square, increasing its commercial floor space 60 per cent. Resurgent office market spurs confidence Charter Hall is aiming to boost its premium-grade floorspace and large office floorplates of greater than 1200sq m, which has been in high demand within Sydney’s commercial core . The second Chifley tower will provide a diversity of commercial product for Sydney’s financial core, and demonstrates a firm belief in the future of the commercial sector’s resilience despite Covid-19 lockdowns and soft office vacancy rates. JLL’s quarterly office leasing report showed a resurgent office market moving into 2022 . JLL head of office leasing Tim O’Connor said organisations were expanding their footprint as the tide was turning. “A number of industry sectors are in expansion mode and contributing to the Sydney CBD demand recovery story,” he said. “The common theme is organisations growing tech-related headcount to improve business processes or evolve their service offering for customers. “There is a view that all organisations are taking less office space upon relocation … actual leasing evidence shows that most organisations are growing headcount and this is translating into a larger occupational footprint.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Charter Hall’s Bid to Build Second Chifley Tower

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