The latest Australian property play being brought to market by billionaire and former casino mogul James Packer is the proposed reincarnation of an historic Surry Hills warehouse, Marlborough House which with the backing of Packer was recently acquired by Sydney developer Time & Place for $110 million.
Originally built in two stages between 1914 and 1934 as the original David Jones warehouse/factory, the 47-97 Marlborough Street (3413 square metre site) is 300 metres from the recently completed $500 million Toga redevelopment of Surry Hills Village.
Subject to regulatory approval, the Marlborough Street site – which hasn’t come to market for over 50 years - will be transformed into 150 apartments, plus 26 affordable units, with an expected end value of around $500 million.
Demolition of the existing structure is expected in 2027 and - everything going to plan - will be completed in 2029.
Under plans already with the NSW Government’s State Significant Development pathway, some of the bones of the existing building will be preserved.
Based on JLL’s listing for the Marlborough House – which is 97% leased - it was modified for commercial use back in the 1970s, the site within Australia’s best performing office market. For example, Surry Hills' (first quarter 2024) vacancy rate of 6.8% compares favourably with 14.2% for the Sydney CBD.
“The acquisition of Marlborough House firmly aligns with our expansion strategy of having prominent landholdings and projects across industrial, commercial and residential in both Sydney and Melbourne,” said Time & Place founder Tim Price.
With planning pathways having improved in recent years, Price is keen to assess more opportunities within key Sydney suburbs where apartment supply remains limited.
Previous property plays backed/supported by James Packer include a residential restoration of a one-time nursing home in Melbourne’s east, and Orchard Piper at Toorak.