Edition 11 - Real Estate

A new statement in the sky

Story by

Simon Anderson

April 2021

Download Full Publication

AMP Capital is close to completing a building project so large, it dwarfs a long history of firsts.

The AMP Building in Sydney, Australia’s Alfred St was the first, and tallest skyscraper in the city when it opened in 1962¹.

Less than a decade later, the Australian Mutual Provident Society, as it was then known, awarded Australia’s largest ever construction contract to build an even taller tower on a neighbouring block. 50 Bridge Street, or The AMP Centre, as it became known, was the tallest in the country when it opened in 1976².

Now, using the original core, AMP Capital is close to completing a building project that tops the lot.

Enter: Quay Quarter

The Quay Quarter precinct, or ‘Quay Quarter’ as the new development is known, represents the culmination of AMP Capital’s real estate experience, bringing together office, retail, dining and residential into an exciting new neighbourhood.

After years of planning and construction, the gleaming new building with its unique twisting form and white façade, is taking its place in Sydney’s famous skyline.

“This is a best-in-class version of all the things that we truly believe in,” says Luke Briscoe, AMP Capital Real Estate’s Chief Operating Officer and Managing Director, Office and Logistics.

This time around though, height isn’t the name of the game.

Instead, Quay Quarter is focused on rejuvenating life at street level for Sydney’s Circular Quay district – and for the city of Sydney itself.

Occupied by the Aboriginal Gadigal people for at least 60,000 years, Circular Quay was the landing site of Governor Arthur Phillip and his First Fleet in 17883.
Some two hundred years later, decades of planning neglect had seen it decline into a tired cluster of office buildings adjoined by tourist eateries, fish and chip shops and a train station.

Now, the promise of the transformation of Circular Quay as the modern gateway to Sydney is coming to life, with a new light rail connection, refreshed pedestrian streets and clusters of laneways alive with cafes, bars and restaurants.

Quay Quarter is the centre of this activity, with its presence over two city blocks creating the kind of dense street-level life that Sydneysiders have always craved.

Inhabiting the lanes will be a cluster of bespoke retailers and boutiques, cafes, bars and restaurants.

The building retains 68 per cent of the original construction... This world-first decision to retain rather than demolish has saved 6.1 million kilograms of carbon emissions.”

Already, renowned restaurateur Scott Brown has committed to a 1,000 square metre, four-level Italian-themed restaurant and basement bar in a heritage-listed wool store. The historic Gallipoli Memorial Club, formed to remember the World War I campaign that killed 7,818 Australians4, is looking forward to moving into newly restored premises in their own restored wool store.

Meanwhile, construction continues on more than 100 low-rise, high-end apartments – sold out in 2017 within two hours of release – which will see residents start to move in this year.

But it’s above the street level that Quay Quarter is already having an impact on Sydney.

As Quay Quarter Tower’s iconic façade rises through the rotating stacked blocks that protect from the sun and open views from the heads to the Sydney Harbour Bridge, the Sydney Opera House and beyond, Sydney is seeing a new landmark appear.

The rotation itself is a unique part of the design. The twisted form facilitates penetration of natural light into the workplace and gives occupants harbour and park views. The building – features a series of indoor-outdoor workplaces with terraces and a podium garden, creating 4,000 square metres of green space.

“We expect this to be an example for future development,” says Briscoe.

Inside, other features are taking shape.

Being a workplace designed to support high performance for its tenants, the 2,000 square metre floorplates, are connected by unique internal multi-level atria which help form one of the world’s first true ‘vertical villages’. The one-of-a-kind façade includes sculpted shading designed to reduce glare on windows, minimising the need for blinds.

At a glance

Construction of Quay Quarter Tower by Multiplex is on schedule for delivery in Q2 2022. With more than 8,000 square metres of retail across the precinct including Quay Quarter Lanes, which is due to open later this year, the retail leasing program, finely tuned towards lifestyle, wellbeing and dining, is well under way, with several new retail leases signed in the last six months, including Hinchcliff House, Tokki (Jnr), Marrickville Pork Roll, The Men’s Grooming, Tribe Lifestyle Hair, Zini Gelatisserie and Skittle Lane.

As the leasing program for the dining, lifestyle and wellbeing retailers in the podium continues, the office building itself is already over 85 per cent leased with three anchor commercial tenants: accounting and consulting firm Deloitte Australia, legal firm Corrs Chambers Westgarth and AMP Limited.

“We’re working very closely with our customers – Deloitte, Corrs, EQT and AMP – and making sure that we’re creating a great platform with them,” says Briscoe.

“They see Quay Quarter as being their global exemplar of workspace and we want to work with them to ensure that can happen.”

“It’s not just our investor’s building, it’s theirs.”

1. https://trove.nla.gov.au/newspaper/article/104924326
2. https://trove.nla.gov.au/newspaper/article/110462333
3. https://sydneylivingmuseums.com.au/exhibitions/gadigal-place
4. https://gallipoli.com.au/about/

Important Notes: While every care has been taken in the preparation of these articles, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) makes no representation or warranty as to the accuracy or completeness of any statement in them including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. Performance goals are merely goals. There is no guarantee that the strategy will achieve that level of performance. The information in this document contains statements that are the author’s beliefs and/or opinions. Any beliefs and/or opinions shared are as at the date shown and are subject to change without notice. These articles have been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. They should not be construed as investment advice or investment recommendations. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.

Click for previous article

Edition 11 - Real Estate

Preparing for the post COVID recovery in 2021

Kylie O'Connor

Click for next article

Edition 11 - Economics & Markets

Turn down the noise to understand what’s happening in the bonds market

AMP Capital

A new statement in the sky

At a glance

Subscribe to Capital Edition

Important Notes