$1 billion tower for Sydney's Darling Harbour by GPT, AMP and Brookfield

Matthew CranstonUnited States correspondent

Updated May 26, 2016 – 9.46am, first published at 12.15am

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Already a subscriber?

A new $1 billion office tower and retail complex to sit above Sydney's Western Distributor freeway and compete with the city's new Barangaroo development, has been planned by three neighbouring office tower owners, whose tenants' view of Darling Harbour will be impeded.

A consortium comprised of the GPT Wholesale Office Fund, Canada's Brookfield and the AMP Capital Wholesale Office Fund has released its vision for the world-class waterfront precinct, which aims to reconnect Sydney's CBD with Darling Harbour.

The precinct will include 15,000 square metres of waterfront retail, a tower with about 70,000 sq m of premium grade commercial space and more than a hectare of green public space.

Proposed GPT Tower site at Cockle Bay Wharf, Sydney. Ryan Stuart

Consortium representative Matthew Faddy said the project would transform Cockle Bay Wharf into a modern "work-and-play destination" and said that tenants in the nearby office towers designed by Harry Seidler and called Darling Park, had given positive responses to the development plan.

"We have spent a considerable amount of time on the viewing corridor and we have managed to minimise the disruption of the views," Mr Faddy said.

"We are in discussions with our tenants in the neighbouring buildings and there has been positive support."

Tenant representatives for the neighbouring buildings declined to comment. Such tenants include accounting firm PwC, and banks including Commonwealth Bank of Australia and Rabobank. Each of those tenants have naming rights over their respective buildings. Their leases in those office towers are due to expire in between six and 10 years.

Plans were known

The Darling Park towers were completed in the early 1990s. Mr Faddy said there had always been some knowledge of plans for a fourth tower in the complex and that the wasted space needed to be utilised.

"This is an important area for Sydney, completing the reinvention of Darling Harbour as a true entertainment precinct and reconnecting the CBD to the Harbour's edge by utilising wasted space and building over the Western Distributor."

The precinct will include 15,000 square metres of waterfront retail, a tower with about 70,000 sq m of premium grade commercial space and over a hectare of green public space.

"The master-planning process is well under way and we are in continued discussions with State and Council authorities, existing tenants and neighbours as we seek to get the right design and public outcomes," Mr Faddy said.

The new precinct, while still less than half the size of Barangaroo, will be a major addition to the city's pool of office space. However, a target construction date is not expected until 2018.

The move by GPT also signals its appetite for development under the relatively new stewardship of chief executive Bob Johnston. GPT is known for its defensive investment and such a bold development play shows the company has capacity to create new investments.

The co-owners of Darling Park are set to undertake a $1 billion revamp of the precinct, which will see the construction of 44-storey tower and new retail offerings.

A target construction date for the new precinct is not expected until 2018.

GPT Head of Asset Management Matthew Faddy. Jessica Hromas

Matthew Cranston is the United States correspondent, based in Washington. He was previously the Economics correspondent and Property editor. Connect with Matthew on Twitter. Email Matthew at mcranston@afr.com