A consortium led by Singapore-listed First Sponsor has joined forces with ICD Property to redevelop the iconic City Tattersalls Club project in Sydney, signalling the group’s first Australian project since its inception in 2007.
First Sponsor primarily operates across three key business segments, namely property development, property holding and property financing and holds investments primarily across China, the Netherlands and Germany.
First Sponsor’s involvement in the City Tattersalls Club iconic redevelopment is two-fold; it will provide equity partnership alongside its investor consortium and will pool its experience across property development to assist in the delivery of the project, ensuring a collaborative approach is taken with ICD Property and the City Tattersalls Club. Secondly, First Sponsor will act as the sole construction financier and will provide funding for the delivery of the project.
The collaboration is currently conditional on certain regulatory approvals and conditions and these are expected to be formally achieved in early 2020.
The deal was brokered by CBRE Director of Debt and Structured Finance, Bradley Duff,who commented on the rising trend of non-bank lending in Australia’s property landscape by saying, “It is important to find the right investors for each project. In Australia we have the unique opportunity to work closely with our nearby Asian partners who possess a growing appetite to find quality developers and partners like ICD and City Tattersalls Club. The alignment of values between Asian investors and Australian companies who offer extremely flexible and structured finance and investment terms can unlock not only key landmark sites like City Tattersalls but other development projects in Australia.”
ICD Deputy Managing Director Sal Quah said the company chooses its partners based on the requirement of each project and is excited to bring such a prominent name to Australia.
“Receiving support from such a significant property player in China and the Netherlands is a testament to our vision for the City Tattersalls Club redevelopment and we look forward to working alongside First Sponsor, and the club itself. In addition, receiving construction funding from First Sponsor will allow for a more efficient and streamlined process with works on the City Tattersalls Club earmarked to commence following Stage 2 approval,” said Sal.
“First Sponsor is excited and honoured to have the opportunity to work with ICD Property and the City Tattersalls Club on such a unique development in the heart of Sydney – we look forward to more opportunities with our new Australian partners,” said First Sponsor’s Group CEO Neo Teck Pheng.
City Tattersalls Club Chairman Patrick Campion spoke about the club’s growing excitement for the redevelopment with the construction finance funding provided by First Sponsor signifying yet another win for the project which recently celebrated receiving its Stage 1 DA approval.
“The City Tattersalls Club has been part of Sydney’s streetscape and history for almost 125 years. First Sponsor’s involvement with their extensive experience and finance capabilities, is a vote of confidence to securing the club’s next 125 years”, said Patrick.
The First Sponsor/ICD Property joint venture and the City Tattersalls Club are preparing to undergo a design competition process with the City of Sydney in 2020, where a prestigious lineup of architects will vie for the design of the City Tattersalls Club in order to achieve the highest possible outcome for the site. Submission of a Stage 2 DA will follow soon after.
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