Singapore’s First Sponsor Closes $16M Deal to Buy Sydney Heritage Building

A consortium led by Singapore-listed First Sponsor has completed the acquisition of Sydney’s City Tattersalls Club in a deal valued at A$24.7 million ($16.7 million), paving the way for the downtown property’s redevelopment into a 50-storey residential and hotel project.

The partially heritage-listed club’s 3,200 square metres (34,445 square feet) will be integrated into the redevelopment plan, which includes 241 apartments, an upscale hotel and event spaces, First Sponsor said Monday in a release.

The affiliate of Singapore real estate giant City Developments Ltd has joined forces with Melbourne-based ICD Property to transform the site at 194-204 Pitt Street after negotiating an agreement with the 18,000-member City Tattersalls Club, which will move to a new venue on nearby Castlereagh Street.

“The club explored several options to sell, and ultimately, accepted the best offer presented, which came from the consortium led by First Sponsor,” said City Tattersalls Club chairman Patrick Campion. “This deal will safeguard the club’s future and will enable City Tatts and members to fully embrace its Castlereagh facility.”

After the Fire Sale

Local media had described the disposal as a “fire sale” made necessary by plunging gaming revenue and declining patronage that left the club with a A$28 million debt. Club CEO Marcelo Veloz told the Sydney Morning Herald that the deal would suffice to pay off the debt and yield working capital and “a reasonable deposit” to buy the new clubhouse.

First Sponsor CEO Neo Teck Pheng described the outcome as positive for all stakeholders and a recognition of the club’s importance within Sydney.

“We look forward to working alongside BVN Architects and FJC Studio (formerly FJMT Studio) to enhance the future use of the former club premises to ensure it adds value to the local community and aligns with the project’s broader vision,” Neo said.

The existing heritage facade and key interior features of the 129-year-old buildings are to be respectfully restored and maintained, the company said.

The redevelopment received approval in 2021 and excavation at the site is almost complete, according to First Sponsor, whose largest shareholder is Kwek Leng Beng’s CDL. The presale launch for the apartments is to start in early 2025, led by CBRE.

Overseas Empire

In addition to Australia, First Sponsor has development projects and investment properties in China, Germany and the Netherlands.

The company’s portfolio includes the Westin Bellevue Hotel in Dresden, acquired for €49.5 million (then $55 million) in 2019, and the Allianz Tower office building in Rotterdam, bought for €62 million last year.

The Kwek family established First Sponsor through participation by its Millennium & Copthorne hotel chain, along with privately held Singapore holding firm Tai Tak Estates.