Greaton is taking full-control Sydney’s $730 million The Ribbon project as Grocon officially leaves the construction site on Darling Harbour.
The Adelaide-based group purchased the development in 2016 and construction rights in February last year, announcing Probuild would finish the build.
The Ribbon is currently 65 per cent complete with the curvaceous 25-storey hotel including 450 guestrooms and 143 suites scheduled for completion early-mid 2022.
The contract should come as a relief to Probuild which was subject to a failed $300 million takeover bid by China State Construction Engineering Corporation, blocked by treasurer Josh Frydenberg.
Meanwhile Grocon is facing creditors over the collapse of its construction companies citing its loss from Infrastructure NSW’s handling of the Sydney Central Barangaroo project among the reasons for its demise.
However The Ribbon was not included in the administration entities from Grocon.
Greaton managing director Nicho Teng said they will see the project finished and this did not change their decision to continue on.
“We have formally taken over the whole project, so Grocon is stepping out from the Ribbon project and we become the developer and Probuild the builder and that’s really cool,” Teng said.
“Our involvement on the project has become deeper and more broad.
“We approached Probuild and another builder in early-mid last year ... so our engagement with Probuild was finalised about last October-November.
“We were talking with Probuild yesterday, and know news has been published, and they feel very firm in their position with The Ribbon project and the very big commitment they have made.
“It would be a shame if we couldn’t deliver, it’s such an iconic beautiful design in such a rare location.”
The Greaton managing director said they are confident in the project and their forecast occupancy rates will align with the bounce-back of Sydney’s hotel market.
“The market is not going to be very strong, as we initially planned but I think the current market will come back after the vaccine and the borders open this year or next year,” Teng said.
“The project, no doubt everyone agrees, is a postcard level project so we have very intensive resources to commit and deliver; and it is already a good shape.”
The five-star W Hotel at The Ribbon designed by Hassell will feature a rooftop pool deck, restaurant, two bars, a spa, gym and event spaces.
The building will also incorporate an IMAX Theatre to reopen on the site as well as public space with pedestrian access, a playground and entrance points.