Grocon has sold the development and construction rights to the Ribbon project on Sydney’s Darling Harbour to Chinese-backed Greaton Development.
Grocon will see construction to completion, with Greaton to become the end owner of the building.
Greaton, who is named as key investor of the hotel project, originally agreed to purchase the hotel in 2016 for $730 million.
“Having fully funded the project, Greaton has now secured earlier ownership of The Ribbon by reaching a strategic and commercial deal to purchase the rights from Grocon,” the developer said.
The 25-storey building will be home to Sydney’s first W Hotel, with 400 rooms, 140 serviced apartments, retail and entertainment opportunities and an IMAX theatre.
The project, which began construction in 2016, is due for completion in October this year, with the hotel to open early 2021.
The sale signals a strategic shift for Grocon, which is best known for large-scale projects such as the Eureka tower in Southbank and Sydney’s Liberty Place.
The developer, which made headlines last year for a lengthy legal dispute with Brisbane landlord Dexus, is making strides in the burgeoning build-to-rent market, having secured approval for a 61-storey apartment tower in Southbank.
The 1,262 square metre site on City Road has approval for 410 apartments.
Grocon’s build-to-rent division, named Home Residential, is backed by Singaporean GIC Investments, and has plans for a second site in Sydney.
Grocon also developed the 2018 Commonwealth Games Athletes’ Village on the Gold Coast, which it converted and successfully sold to a Middle Eastern owner as a build-to-rent complex.
Grocon scion Daniel Grollo said the company is looking long-term in the development sector.
“We’re continuing to do what we do; we are still developing and creating great real estate assets,”
“We don’t want to be a fixed-price contract builder. For us it is not the best use of capital and our skills,” Grollo said.
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Image source: Grocon
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