Melbourne-based developer Grocon has extended its footprint in Sydney, paying $70 million to move to full ownership of the Imax Theatre site at Darling Harbour.
Grocon exercised its option to buy co-owner Markham's share of the site, which it plans to redevelop into a state-of-the-art office tower with ground-floor retail.
The first artist's impression, lodged in 2013 and approved last year, shows a distinctive glass-enclosed tower moulded into a ribbon shape.
Grocon has built a number of well-known Sydney properties, including No.1 Martin Place, the Cove Apartments and the new 5 Martin Place.
The development of the Imax site comes amid strong demand for new offices in Sydney, boosted by the growth in the technology sector. Major groups Google, Amazon, Apple and Twitter are all leasing traditional city office space as their businesses expand globally.
John Preece, head of office agency at Knight Frank, said the falling vacancy rate in Sydney had continued overall to be sitting at 6.3 per cent.
Once construction of The Ribbon starts, it will add to the 150 cranes already on the Sydney metropolitan skyline stretching out to Parramatta. In the city, they can be seen right across the core to Darling Harbour and south to Haymarket.
According to a list compiled by Transport for NSW, there are almost $40 billion of major projects under way in central Sydney, or about 90 individual initiatives.
This will eventually include the planned $11 billion cross-city rail line from Chatswood to Sydenham. NSW Transport Minister Andrew Constance has said he wants construction under way by 2017.
A Markham-managed fund bought the Imax site in 2005 and undertook a two-stage reconfiguration and extension of the existing building in 2006 and 2010.
In 2011, Markham identified the potential to redevelop the site and sought a partner. It entered into a development rights agreement with Grocon in July 2012.
Markham managing director James Markham said the sale of Imax concluded a successful 10-year investment for the group and its investors.
Grocon chief executive Carolyn Viney said it was committed to the redevelopment of the Imax site.
"This truly is one of the most iconic sites in Sydney and we're passionate about a redevelopment of it to ensure that its potential is realised," Ms Viney said.
"The building design we've come up with is of itself hugely exciting and when we put that together with the significance of the location, we think we can do something really, really special."
