Charter Hall remains optimistic about future demand for office space, lodging plans for an AU$85-million (US$65 million) extension to its office tower at 201 Elizabeth Street in the Sydney CBD.

The 11-story development will replace the existing two-story food court on the corners of Park and Elizabeth Streets and will provide 10,000 square meters of additional office floor space plus a new lobby and plaza for the building.

Charter Hall has held the building since mid-2019 after outlaying AU$630 million (US$482 million) alongside partners Abacus Property Group.

Previous owners Dexus had originally sounded out plans for a AU$400 million (US$306 million) overhaul of the tower, converting it from office spaces into a luxury hotel and apartment complex.

In its current format, the 38,000 square meter tower, built in 1973, spans 38 stories of office space plus ground floor retail tenancies and a lower ground food court.

Charter Hall has enlisted architecture firm FJMT to create the new podium extension and envelope for the existing building.

The site has had prior stage one envelope approval for a podium volume up to the 45 meters, matching the historical and existing street wall running the length of Elizabeth Street.

“Projects like this are a vital driver in Sydney’s post Covid-19 economic response with jobs created when construction commences,” a Charter Hall spokesperson said.

“When completed [the development] will provide modern facilities to accommodate new permanent professional roles at a time when the economy is expected to be in a recovery phase.”

Charter Hall already had a large exposure to the CBD precinct—recent acquisitions include a half stake in Sydney’s landmark Chifley Tower, which it bought for around AU$900 million (US$688 million) in 2019.

The developer is also testing the market, offering its landmark tower at 9 Castlereagh Street through Cushman and Wakefield.

Charter Hall bought the Harry Seidler-designed building through its Core Plus Office Fund in 2013 from Stockland for AU$172 million (US$131 million).

Late in 2020, it cashed in on a prominent office tower in North Sydney, selling the building at 65 Berry Street to local fund manager Intera Group for AU$212 million (US$162 million).

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