Pontiac secures Sydney sandstone hotel tender victory
The Pontiac Land Group from Singapore has been awarded the rights to develop the two heritage sandstone buildings in Sydney's Bridge Street.
It will become a $300 million, 240-room luxury hotel after the leasehold sale by the NSW Government.
The developer secured the long-term lease of the former Lands Building at 23-33 Bridge Street and the 1915 Education Building at 35-39 Bridge Street.
The property portfolio of the billionaire Kwee family already includes luxury hotels, the Ritz-Carlton Millenia and the Regent Four Seasons hotel in Singapore.
It will pay $35 million for the 103-year lease of the 19th century landmarks.
"This flagship hotel is all about making smarter use of our property assets. Proceeds from the lease will be reinvested in infrastructure, and there will be substantial savings to NSW taxpayers on avoided maintenance," NSW Minister for Finance, Services and Property, Dominic Perrottet said.
"Importantly, these iconic heritage assets will be enjoyed by locals, tourists and visitors, rather than just being used as offices for bureaucrats."
A concept plan approved by the NSW Planning Department allows for up to three additional storeys on the Department of Education building which lies between Loftus and Young streets.
Construction is expected to commence after the buildings are vacated in 2018.
