Dominic Perrottet med rel: Sandstones to head to market in late 2014

NSW Minister for Finance and Services, Dominic Perrottet, announced that Sydney’s iconic Sandstone buildings could be heading to market within the coming months.

“In 2013, the NSW Government earmarked the Education and former Lands Buildings on Bridge Street to be developed for hotel and tourism purposes,” he said.

“Since then, Government Property NSW (GPNSW) has done a lot of work in the background to bring this project to market, and indications suggest that we may be ready to make a formal approach to market in the final quarter of 2014.

“To ensure we get the best value and right outcomes for these historic assets, GPNSW will continue working the Heritage Council, Sydney City Council and the Planning Department before approaching the market.

“The Sandstone buildings are treasured pieces of architecture in the heart of Sydney’s CBD and our analysis indicates that the two buildings could house high-end or boutique hotels.

“More hotel rooms in the inner-city means more jobs and greater economic benefits for the area, with businesses including cafes, restaurants, retailers and tourism operators all expected to see the advantages of having more people staying in the CBD.

“The divestment and potential redevelopment of the Sandstones Buildings will support the NSW Government’s plan to increase the amount overnight visitor contribute to our economy by up to $36.6 billion by 2020.”

Mr Perrottet said the precinct had attracted strong interest from the high-end hotel market.

“There was a high-level of local and international interest in the Sandstone precinct with over 35 responses received during the initial Registrations of Interest (ROI) phase, which concluded in March,” he said.

“Responses were received from companies and consortiums based as far away as Hong Kong, France, India, Singapore, United Arab Emirates, United States and the United Kingdom.

“These landmark buildings will continue to hold a special place in our state’s history and we want to make sure that they are developed and used in way that preserves the cultural status of the Sandstones.”

Proceeds from the sale of surplus non-core government properties have been used to assist in funding new infrastructure, health, education and transport services.

Since GPNSW was formed in 2013, several major commercial office assets have been sold which have helped to release more than $585 million of capital for the Government and communities around NSW.

In March 2014, the Ausgrid Building on George Street in the Sydney CBD was sold to private owners for $151.8 million.