It was one of the biggest office transactions of 2023, and now the tower at 60 Margaret Street has been approved for a podium redevelopment.
AsheMorgan and MEC Global Partners Asia, a subsidiary of Mitsubishi, have won approval to breathe new life into the property after acquiring the 36-storey tower for $779 million just over a year ago from Blackstone and Mirvac.
City of Sydney Council has approved plans for a Grimshaw-designed contemporary podium that will create more than 2000sq m of new flagship retail, that will reinforce George Street as a premier retail spine through the city.
The approved scheme allows for the demolition of part of the existing podium, including retail facades, lobby and the existing plaza alongside Margaret Street.
The tower’s food court will be upgraded, along with a new three-storey lobby that will service the office occupants, as well as the additional 5200sq m of premium office space being created within the podium.
The scheme would also include a new public piazza opposite Wynard Park, an upgraded laneway link between Margaret and Jamison Streets and an enhanced connection to Wynyard Station.
AsheMorgan principal Alton Abrahams said it was a “once-in-a-generation opportunity” to regenerate the asset in line with the City of Sydney’s vision for George Street.
Abrahams said it also would complement the nearby Wynyard Station and the new Hunter Street Metro West station.
MEC Global Partners Asia head of Australia Luke Tarrant said the building would be improved to achieve a 5.5-star NABERS energy rating (it currently has a 4.5-star NABERS rating), which reflected the brown-to-green strategy being promoted by the joint venture partners.
“This development will make an important environmental contribution by allowing the embedded carbon in the 40,000sq m tower to be retained, revitalising the building for decades to come,” Tarrant said.
MEC Global Partners Asia is an investment management platform for Japan’s largest real estate developer Mitsubishi Estate.
Mitsubishi Estate has more than $100 billion in assets under management across 31 countries.
According to King & Wood Mallesons, which advised on the deal last year, it was the first time a large-scale, value-added fund was established by a Japanese real estate company in Australia.
