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Singapore’s Pontiac Land will redevelop the historic sandstone buildings in Sydney into a luxury boutique hotel on behalf of the New South Wales (NSW) government, Australian media reported Wednesday (16 September).
Pontiac Land beat a large number of contenders for the long-term lease of the former Lands and Education buildings.
Under the deal, the property developer will pay A$35 million (S$35 million) to the Government Property NSW for the lease, along with a commitment to undertake refurbishment worth between A$250 to A$300 million (S$300 million).
The Government Property NSW retains custodianship of the heritage buildings, overseeing the transformation during development approval as well as construction phases.
According to NSW Minister for Finance, Services and Property, Dominic Perrottet, the redevelopment of the buildings has been on the agenda for some time since maintenance of the sandstones cost the NSW government over A$2 million (S$2 million) per year during the past two years.
“This flagship hotel is all about making smarter use of our property assets,” said Perrottet.
“Proceeds from the lease will be reinvested in infrastructure, and there will be substantial savings to NSW taxpayers on avoided maintenance. Importantly, these iconic heritage assets will be enjoyed by locals, tourists and visitors, rather than just being used as offices for bureaucrats.”
Meanwhile, Pontiac Land will be responsible for the design and planning approvals, with construction set to begin after the buildings are vacated by the Department of Education and the Department of Planning and Environment in 2018. The new hotel is expected to open about three years later.
Pontiac Land’s portfolio includes luxury hotels in Singapore like Capella, The Ritz-Carlton Millenia, Regent (A Four Seasons Hotel) and Conrad Centennial as well as retail sites and apartments.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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