Insights

Heritage that pays its way

For eligible CBD owners, conserving a heritage building can unlock value beyond the works themselves. Sydney’s Heritage Floor Space scheme creates an opportunity to rethink the cost of conservation and its role in the longer-term strategy for an asset.

Sydney’s heritage buildings offer something newer developments spend considerable effort trying to create. Character, material richness and a connection to the city. For owners, those qualities come with responsibilities. Sandstone needs repair, timber windows need restoration and a century-old facade requires specialist attention.

The instinct is often to address each issue as it arises. But before committing to the next major expense, there is a broader question worth asking. Could those works form part of an investment that generates capital as well as protecting the building?

The City of Sydney’s Heritage Floor Space scheme makes that possible. Eligible owners can earn intangible floor space through approved conservation works, then sell it to developers who need it to satisfy requirements attached to certain Central Sydney developments. The heritage building stays in place, while its award supports development elsewhere.

Date

30 October 2026

IMAGERY

Nic Gossage

Enquire Now

For owners, the financial opportunity can be substantial. In the 12 months to June 2026, the average sale price was approximately $2,067 per square metre. An award of 1,600 square metres would represent around $3.3 million at that rate, before conservation, professional and transaction costs. Actual proceeds depend on the award approved and the sale negotiated.

Depending on the scope and cost of the works, an award may help fund conservation and leave capital available for other priorities. That changes how an owner might assess expenditure that initially appeared to be another maintenance liability.

Eligibility, conservation costs, approval requirements and the timing of a sale all influence the outcome. Eligible buildings must meet specific planning criteria, and owners register covenants protecting the building’s scale and committing to ongoing conservation. Understanding those obligations is part of assessing the opportunity.

For us, the most useful conversation starts before the works are scoped. If a facade already needs attention, what else should be considered alongside it? Could coordinating roof, window and masonry repairs reduce disruption or repeated expenditure? How will the building operate during the works, and when might sale proceeds become available?

“Owners often see a heritage listing as a constraint. Handled well, the Heritage Floor Space scheme turns it into an asset. The building is restored properly, and the owners are left with capital to put to work.”

Matt Davoren

Founding Director

Our team is working through these questions with owners at the Metters Building on Elizabeth Street and former warehouse properties on Kent Street. Each has different conservation needs and ownership considerations. The common opportunity is to connect the immediate works to a longer-term plan for the asset.

At the Metters Building, 154–158 Elizabeth Street, facade remediation is under way while the owners corporation progresses its heritage floor space application. A heritage architect is overseeing the conservation work and supporting documentation, while we coordinate owners, occupants and the delivery team to keep the building operating around the works.

On Kent Street, the owners of 346–348 and 364–372 Kent Street are preparing a development application incorporating an award of heritage floor space. Conservation plans, structural assessments and a costed asset management plan bring the proposed investment into one view. Works range from sandstone and window restoration to carefully relaying courtyard cobblestones to resolve ponding, preserving the buildings’ character while improving their everyday use.

This is where active asset management brings value. Heritage specialists establish the conservation requirements. Our role is to help owners understand how the program fits commercially and operationally, bringing the advice together, coordinating the process and keeping decisions moving.

Timing can also influence the funding strategy. Subject to approval and sufficient conservation being achieved, a staged award may allow some floor space to be registered and sold before later works are complete. Buildings already conserved and in good condition may qualify for a retrospective application. Understanding the appropriate pathway early helps owners plan expenditure with greater clarity.

Sydney’s heritage buildings reward owners who understand what makes them valuable. Their character attracts people, and thoughtful conservation protects that appeal. The Heritage Floor Space scheme gives eligible owners a way to connect that investment with the capital potential of their asset.

If you own a heritage building in the CBD, we would welcome a conversation about whether the scheme could form part of its next chapter of ownership.

Heritage that pays its way

Date

IMAGERY

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Heritage that pays its way

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