The Property & Development NSW (PDNSW) team is responsible for the management and delivery of largescale, or complex, real estate projects and transactions.
The Proposal is currently in Stage 2 of the USP framework where the Proponent and the Government work together on the development and assessment of a Detailed Proposal.
PDNSW is currently undertaking robust due diligence investigations to support the assessment of the Proponent’s Detailed Proposal and to ensure the proposal provides value for money for the Government.
A Proposal Specific Steering Committee has been established. At the conclusion of Stage 2, the Steering Committee will make a recommendation to the NSW Government on whether the Proponent’s Detailed Proposal should proceed to Stage 3 ‘Final Binding Offer’.
What is proposed?
The Proponent has submitted an Unsolicited Proposal (USP) to the NSW Government for the acquisition of the long-term leasehold (99-years) for 50 Phillip Street, Sydney. The Proposal seeks to amalgamate 50 and 52 Phillip Street, Sydney (owned by the Proponent) to develop a 5/6-star hotel. The Proponent proposes to retain and refurbish the property and develop the air space above 50 Phillip Street.
As part of the Proponent’s proposal, 50 Phillip Street will accommodate the main hotel entrance, lobby, conference rooms and back-of house areas, as well provide some accommodation. Phillip Lane will also be upgraded.
The Chief Secretary’s Building (121 Macquarie Street, Sydney) is a separate building adjacent to 50 Phillip Street and will not be leased to the Proponent as part of this transaction. It will remain in NSW Government ownership.
Key objectives of the project include:
- Ensure value-for-money outcomes for the Government;
- Alignment with Government priorities, including the Macquarie Street East Precinct Strategy.
- Rejuvenation and adaptive reuse of a NSW Government-owned heritage building
- Regeneration and enhancement of public domain, particularly the upgrade to Phillip Lane
- Creation of a heritage tourism precinct. Non-financial benefits
- Job creation and tourism industry benefits from the construction and operation of a new 5/6 star hotel.
- Reinvestment of proceeds into government services and infrastructure.
- The Department of Communities and Justice and PDNSW are working together to deliver this project and to develop a robust framework for assessment of the Detailed Proposal;
- An Assessment Panel and Proposal Specific Steering Committee has been established which includes members from a number of agencies, including:
- Department of Premier and Cabinet;
- NSW Treasury
- Department of Communities and Justice; and