After paying $779 million for it last year, the partnership that owns a prime 36-storey Sydney office is investing in the asset.
Japanese real estate developer Mitsubishi Estate, alongside investment house AsheMorgan, acquired 60 Margaret Street from Mirvac and Blackstone in October, 2023.
According to King & Wood Mallesons, which advised on the deal, it was the first time a large-scale, value-added fund was established by a Japanese real estate company in Australia.
Now, the partnership is planning a major office renovation of the 4464sq m site in the CBD.
The development application filed with the City of Sydney seeks to demolish part of the existing podium, including retail facades, lobby and the existing plaza alongside Margaret Street.
Internal areas of levels 4 through 8 to accommodate proposed works are also sort as part of the plans by architects Grimshaw.
Mitsubishi wants to refurbish and add new flagship retail tenancies to the George Street side of the property, and construct a new six-storey podium building by infilling setback areas.
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The proposals adds retail, commercial office and a health club to the expanded podium, and will upgrade the public realm.
“Since acquiring the site in 2023, the new owners have been exploring opportunities to improve the existing building, its address to the street corner, public connectivity and pedestrian experience to best realise its potential at the prominent Central Business District (CBD) location,” the development application said.
The podium on the existing building was originally designed as a banking chamber and is thus not easily adaptable to other purposes, it said.
Major office assets have been getting makeovers as new and existing owners look to reposition assets.
Graphics company Canva’s headquarters is the subject of a major renewal after its owners acquired it for $123 million, Afterpay’s newly refurbished adaptive reuse building was placed on the market earlier this year with a pricetag of $140 million, and Doma Group is planning the upgrade of music giant Sony’s former HQ in Darlinghurst.
