First Sponsor ties up with ICD Property to redevelop Sydney’s City Tattersalls Club project

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First Sponsor entered its first Australian project, tying up with ICD Property to redevelop the City Tattersalls Club project in Sydney, the Singapore-listed company said in a filing to SGX Monday.

The company said it will provide equity partnership with an investor consortium for property development, located on Pitt Street, and it will be the sole construction financier providing funding for the project’s delivery.

Under the deal, First Sponsor’s wholly owned subsidiary, FS Australia Property 5 (FSAP5), Applewood Holdings and Hong Kong-based Bull-Oak Investments agreed to take 39.9 percent, 30.1 percent and 10 percent stakes, respectively, in ICD SB Pitt Street Pty. and ICD SB Pitt Street Trust, both of which are currently owned by a subsidiary of ICD Land, the filing said.

Applewood Holdings and Bull-Oak are the investment vehicles of high net worth individuals, while ICD Land is part of the ICD Property Group, the filing said.

FSAP5’s estimated price for the stake is around A$49.4 million (approximately S$45.7 million), the filing said.

Earlier this month, the Central Sydney Planning Committee granted envelope approval to ICD Property for the stage one concept development application for the project site to be developed in partnership with the around 125-year-old club, First Sponsor said.

The approval allows the renovation of the clubhouse, including retail, restaurants, a ground-level combined hotel and club reception, event space, co-working center and other facilities, the filing said.

Under the deal, ICD SB Pitt Street Pty. will spend up to A$100 million, or around S$92.6 million, for works on the club premises and hotel, the filing said.

In addition, the project plans a 49-storey tower above the historic clubhouse to include residential apartments and a high-end hotel, the filing said.

ICD Deputy Managing Director Sal Quah said getting construction funding from First Sponsor will be more efficient as work is expected to begin once stage two approval is received.

The First Sponsor-ICD Property joint venture is preparing a design competition process with the City of Sydney next year for architects to submit potential plans for the site, the filing said.

The tie-up is conditional on regulatory approvals and other conditions which are expected to be met in the first quarter of next year, the filing said.

First Sponsor has three main business segments — property development, property holding and property financing — with its investments mainly in China, the Netherlands and Germany, the filing said.

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