First Sponsor to fund, redevelop Sydney site into 49-storey tower

Fiona Lam
Published Mon, Nov 25, 2019 · 12:34 AM

A CONSORTIUM led by mainboard-listed First Sponsor has partnered Australia's ICD Property to redevelop the iconic City Tattersalls Club (CTC) project in Sydney.

CTC is one of the largest and oldest premier business and sporting clubs in Sydney. The property is situated at 192 to 204 Pitt Street, in the core central business district of Sydney. It has a site area of some 2,337 square metres.

The tie-up between the First Sponsor investor consortium and ICD follows a landmark decision by the City of Sydney on Nov 14, whereby the City granted envelope approval to ICD for the stage 1 concept development of its CTC site.

ICD is developing the site in partnership with the almost 125-year-old club.

The City's approval allows for plans to rejuvenate the entire clubhouse. This includes retail outlets, restaurants, a combined hotel and club reception on the ground level, an event space, a premium coworking centre, health and well-being facilities, as well as other member facilities.

There are also plans to develop a 49-storey tower above the historic site, comprising apartments and a high-end hotel plus ancillary facilities.

The consortium - comprising First Sponsor's wholly-owned subsidiary FS Australia Property 5 (FSAP5), Australian firm Applewood Holdings and Hong Kong-incorporated Bull-Oak Investments - will acquire 39.9 per cent, 30.1 per cent and 10 per cent stakes respectively in both ICD SB Pitt Street Trust (ISPS Trust) and its trustee, by subscribing to new units in the trust and new shares in the trustee.

As at Monday, ICD Land, a member of the ICD Property group, owns all issued units and shares in the trust and trustee.

Applewood and Bull-Oak are the investment vehicles of high net worth individuals.

First Sponsor is also the sole construction financier for the project's entire delivery. By way of subscription of loan notes, the group will provide up to A$370 million (S$342.7 million) in funding.

Under a 2015 development management agreement with CTC, ISPS Trust is to renovate the club's premises and develop the airspace above the premises into a hotel and apartments.

The trustee shall spend a maximum of A$100 million to complete the works for the club's premises and the hotel, under the 2015 agreement. The trustee is also to select and enter into a building contract with a builder, and obtain construction financing for the project.

After obtaining the stage 2 development approval from the City of Sydney, the trustee will enter into contracts for sale with buyers of the new apartments on behalf of the club.

The collaboration between the consortium and ICD is subject to regulatory approvals and conditions, which are expected to be achieved in Q1 2020.

First Sponsor holds investments primarily across China, the Netherlands and Germany. Its shares closed unchanged at S$1.30 on Friday.

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