The world’s tallest timber tower will rise with Lendlease backing, with the development arm now working with Merricks Capital on Milligan’s new 55-storey ‘Halo’ $1.8b development, set to transform downtown Sydney.
It came just days after the construction giant revealed that it was cutting its US and UK assets loose, releasing AU $4.5 billion worth of capital into the Australian marketplace – with the Milligan project billed as one of its prime projects. Already, the giant has sold a portion of its US operations to Consilgi, which will take over 45 projects on the East Coast.
The deal, confirmed yesterday during a presentation to investors, will see Lendlease take exclusivity over the site, subject to a due diligence period. Lendlease is now busy locking in capital partners before selecting a builder for the main works.
As reported by News Corporation, Cushman & Wakefield and JLL have been drafted to advise on a forward sale transaction aimed at locking in local and offshore partners.
Will ‘Halo’ command sky-high premiums?
The $1.8b tower, dubbed “Halo,” is winning traction among corporate tenants keen to shift into next-generation towers with top environmental credentials. It comes amid a push by corporate tenants demanding greener, cleaner, and more sustainable buildings, fueling a new wave of green buildings.
Designed by Bates Smart Architects, it will stand as one of the world’s most sustainable buildings. It will have Australia’s largest facade PV arrays, use low-carbon concrete, in addition to cross-laminated timbers and glulam, be all-electric, and have net zero emissions, as well as targeting 6 Star Green Star and 6 Star NABERs rating.
In addition, it will feature a 4,000 sqm health and wellness centre, 3,000 sqm restaurant and bar space, and more than 40,000 square metres of A-grade office space.
The new building will tower over Sydney’s skyline.
In July 2022, Milligan Group received approval to rezone the 2,000-square-metre site at the junction of Hunter and Pitt Streets over the new Hunter Street Station as part of Sydney’s new $6.5b Sydney Metro West. Milligan spent years securing five properties as part of a “super site” – with Lendlease guiding the project team for over a year.
Australia now leads the world in the push to build skyscrapers out of timber, with “Halo” just a hop, skip and jump from Atlassin’s new 39-storey timber hybrid tower, which is now “out of the ground.” Whilst Melbourne-based developer Grange Developments is currently working through a 50-storey timber-hybrid residential development in Perth.
The site spans 15-25 Hunter St and 105-107 Pitt St and is in Sydney’s core precinct, dominated by the financial, legal, property, and tech sectors. For its measure, Milligan has described the project as “a legacy building for Central Sydney in the form of a world-class commercial office tower in the commercial core of the CBD.”
- Visit Wood Central’s feature to learn more about Australian developers’ push to build taller buildings from timber.
