Work will start this month on Newcastle's latest high-rise office and hotel buildings, four years after developer DOMA first lodged plans for the project.
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The five-star Little National Hotel and adjoining 5000-square metre office building are on Honeysuckle Drive between Hunter Water and the state government's Honeysuckle HQ redevelopment site.
DOMA general manager of development Gavin Edgar said on Thursday that the company was confident of securing tenants for the offices by the time they were completed in late 2023.
The NSW government approved the $44 million project in January last year after designating it as state significant development.
DOMA had lodged plans for a 147-room hotel and 52 apartments in 2018. It changed the units to serviced apartments that year then dropped them altogether to expand the hotel and build offices.
The company started preparatory works on the site several years ago, but the land has been sitting idle since then.
DOMA's decision to go ahead with construction is another vote of confidence in the city's economy after fellow developer Iris launched the final two stages of its massive EastEnd residential and retail development next to the Hunter Street Mall.
The Little National Hotel will have 181 rooms and be modelled on DOMA's LNH-branded hotels in Sydney and Canberra.
The hotel will be the third five-star establishment in Newcastle after the Kingsley, in the former council "roundhouse" building, and the QT Hotel, due to open next month in the former David Jones building in the Hunter Street Mall.
The DOMA office building will use cross-laminate timber construction rather than concrete, a method also used in the University of Newcastle's nearby Stage 1A building.
"We are aiming to appeal to tenants that have a strong vision for their business lowering their carbon footprint," Mr Edgar said.
"In contrast to concrete, timber stores embodied carbon. By replacing concrete with timber, the structure will embed tons of carbon instead of emitting them."
He said the construction method would help "progressive" tenants reach their sustainability goals.
"Our discussion with tenants is indicating that climate change is now shaping corporate values, choices and investment decisions with many companies having already declared net zero goals," he said.
"We are witnessing a huge global shift in corporate climate disclosure policy, and the timing couldn't come soon enough for this office building.
"It is our view that future legislation will incentivise sustainable buildings with regulatory and tax changes favouring sustainable investments and disadvantaging those that are not."
DOMA has rented out its 15,000-square metre Store office building, which opened last year next to the Newcastle Interchange.
Former NSW planning minister Rob Stokes said last year that the Little National Hotel and office building project would employ 1000 construction workers and support 60 ongoing jobs.
DOMA has appointed Newcastle construction company BUILT as principal contractor.
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