Australia: Investment manager Investa is moving ahead with plans to develop a coliving project in the Sydney CBD, in partnership with The Salvation Army.
Plans have been filed for a 17-storey coliving building at 136-140 Elizabeth Street, after the partnership was announced in February.
It will deliver 15 storeys of coliving space comprising 251 rooms and two storeys of community use.
The basement level of the existing building, currently used by the Salvation Army, will be converted to accommodate 100 bike parking spaces and plant equipment.
There will also be 792 square metres of communal space to help The Salvation Army deliver services to the community, and public domain improvements on Elizabeth Street.
Designed by Mostaghim, the new building will have outdoor terraces at levels three and eight as well as the rooftop.
The development application filed with the City of Sydney by Ethos Urban said the proposal contributed to the “overall stock and diversity” of residential accommodation in the CBD.
The current building was built in 1990 and is The Salvation Army’s primary headquarters in Sydney. It is near the Museum train station as well as Gadigal Metro station and the Chinatown light rail station, and Hyde Park is 150m to the north. It will be would be demolished under the proposal.
The Salvation Army undertook an expressions-of-interest process in 2023 to redevelop the site, which is described as ageing and at the end of its lifespan.
The proposal is a significant shift from initial plans revealed in June of 2023, when The Salvation Army sought expressions of interest for a potential office or hotel partner for a building up to 28 storeys.
Commenting on the deal for the building, Peter Menegazzo, CEO of Investa said: “We’re delighted to partner with The Salvation Army on this exciting opportunity which is expected to deliver the first Sydney CBD studio living asset in Australia. We have high conviction in the living sector, evidenced by the ~1,400 BTR apartments (completed and under construction) and an ability to unlock further suitable Studio Living sites.
“There is increasing demand for rental housing options that provide residents with quality product that is well located to employment centres and transport, and where they can become part of a community. This evolving housing need has created strong market fundamentals that support diversifying and expanding our living sector portfolio,” he added.
Sydney City Salvation Army manager Mitchell Evans said: “140 Elizabeth Street has a long and important history within The Salvation Army, so it was important for us to select a partnership arrangement that enables us to maintain an ongoing presence in Sydney’s CBD where we will continue to reach and serve the local community, as well as have a place of worship and ministry. As part of the development, Investa will deliver a stratum across ground and level 1 that will be handed back to TSA for us to own and manage.
“This opportunity will help support The Salvation Army to continue delivering its important services that help those who are vulnerable or marginalised in our community get the help they need across areas like housing, financial hardship, homelessness and much more,” he added.
Subject to planning consent, construction is expected to commence in 2027, with the asset expected to be operational in late 2029.
Highlights:
• Investment manager Investa is moving ahead with plans to develop a coliving project in the Sydney CBD, in partnership with The Salvation Army
• Plans have been filed for a 17-storey coliving building at 136-140 Elizabeth Street, after the partnership was announced in February
• Designed by Mostaghim, the new building will deliver 15 storeys of coliving space comprising 251 rooms and two storeys of community use
