Merivale Vies for Dual Tower CBD Development

Justin Hemmes, one of the nation’s most prominent hotel owners, is understood to be in the running to deliver two new towers above the forthcoming Hunter Street metro station in the city’s CBD.

Hemmes’ private Merivale Group is reportedly part of a consortium including developers Lendlease and Mirvac, tendering to build two 50-storey towers that form part of the Sydney Metro West CBD development.

Earlier this year, the NSW government announced its intentions to invite the private sector to build the state significant development.

The towers will provide 150,000sq m of office space as well as dining and retail precincts, above the new Hunter Street station, which is expected to break ground in mid-2023.

The 58-storey east tower will front Bligh, Hunter and O’Connell streets—part of which is owned by Mirvac—while the 51-storey west tower will corner George and Hunter streets.

The station, on the corner of Hunter and George streets and Bligh and O’Connell streets, forms part of the $27-billion Metro West rail line—a new underground line that will double rail capacity between Parramatta and the Sydney CBD.

▲ The towers, dubbed Hunter Street East and West, will be built above the east and west station entries—the designs of which were released in September.

So far, Sydney Metro, the government agency overseeing the rail project, has commenced planning for over and adjacent station development at Hunter Street by lodging a scoping report for sites with the Department of Planning and Environment.

While a Sydney Metro spokesperson could not confirm Merivale’s impending bid, they told The Urban Developer the station’s partnership delivery model had provided greater flexibility for developers to bring forward a variety of solutions. 

“Sydney Metro is currently in the final evaluation and approval process for this first stage,” they said.

 “We cannot disclose details of the bidders at this stage, however, shortlisted tenderers for participation in stage two of the procurement process will be announced by the end of this year.

“The final value of the precinct development partner contract will be confirmed following contract award, following the same process as other Sydney Metro contracts.”

The proposed towers have caught the interest of office heavyweights Dexus, Lendlease, Charter Hall, Mirvac and Investa, as well as offshore investors. 

Global investment giant Brookfield, which redeveloped Wynyard station and over-station development, has apparently put itself forward for the Hunter Street precinct.

▲ Two towers just shy of 270m will be built over the new transportation hub.

Hoteliers, retailers and hospitality ­operators are also chasing positions on the site, whose scale and position make it akin to the $3-billion Macquarie Group over-station development at Martin Place.

Hemmes, who holds a personal fortune of $1.3 billion, has been acquiring properties on George Street near his well-known Ivy precinct—at 330 George Street—in recent years among other parts of the CBD.

Merivale Group, the largest restaurant, pub, bar and hotel group in the country with more than 100 venues, has emerged as a potential precinct development partner having met with senior government ministers and officials several times over the past 18 months to discuss “CBD revitalisation”.

Hemmes had been plotting to build a $1.5-billion skyscraper above his Ivy venue opposite Wynyard Station after mooted plans for a 52,500sq m tower comprising office space, a luxury hotel and a hospitality precinct were unveiled.

Hemmes also snapped up the Kings Green site—four heritage-style buildings in the King, Clarence and York Street precinct between Town Hall and Wynyard—for $200 million in June.

It seems the pub baron has now changed tack in Sydney’s CBD, targeting the available Hunter Street over-station tender alongside listed developers Lendlease and Mirvac.

Sydney Metro is also making provision for over-station development and adjacent station development above or around new stations at Westmead, Parramatta, Sydney Olympic Park, Burwood North, The Bays and Pyrmont.

The Urban Developer reached out to Merivale, Lendlease and Mirvac who declined to comment “on speculation”.