Property investor and developer Tipalea Partners has submitted plans for a $200 million office tower in Mascot.
Months after snapping up the $40 million corner block on 50 Kent Street, Tipalea has lodged a development application and is looking for tenants to fill the 11-storey office tower.
The 18,000sq m commercial office space called Fifty Kent was designed by Sissons Architects and includes a 200m running track on the roof, 600sq m of end of trip facilities and dedicated wellness centre.
Tiplea initially pinned their plans for the south Sydney area on a $90 million office space at 29 Bourke Road, Alexandria “although not part of the original investment strategy” they sold the 1.1 hectare site including the adjoining property for $69.5 million to a private investor in August 2019.
Tipalea Partners chief executive officer Scott Spanton said despite not having turned a sod of soil, selling the Alexandria property was good for investors and the purchaser shared their vision for the site.
“Whilst Tipalea have long been supporters of Alexandria, the record sale of our projects at 23 and 29 Bourke Road in 2018 reset that market to new heights and we have subsequently had to look further afield for value opportunities,” Spanton said.
Spanton said historically the rents achieved in Mascot were too low to give them much of a construction budget.
“However with the capital values now achievable in Mascot, we are able to provide a generous construction budget to deliver the latest and greatest features in a workspace,” Spanton said.
Colliers International south Sydney director Michael Crombie said companies were forced to move outside the CBD due to rental increases and were looking at fringe suburbs.
“The (Fifty Kent) development delivers CBD quality at 60 per cent of the rental cost; Mascot has comparable existing rents to Homebush and Macquarie Park but substantially more amenity and just two train stops to Central Station,” Crombie said.
“Rents in the area are around $650 per square metre gross for a brand-new A grade building, which is $300sq m cheaper than Surry Hills or Pyrmont and $100sq m less than Alexandria, making Mascot the most affordable and well-connected city-fringe office market.”