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The rail corridor between Central and Eveleigh will be built into high rises and the space over rail lines will be developed as the state government calls for global investment to create a "new heart" for Sydney.
Planning Minister Brad Hazzard said the government would call for expressions of interest from around the world for the project that would develop up to one million square metres of space and create thousands of new jobs and homes.
A rail corridor between Central and Eveleigh will be built into high rises and the space over rail lines will be developed.
"We believe there is an opportunity for a world class redevelopment of the corridor on a scale that reflects Sydney's global status," he said, adding similar projects had been undertaken in New York, Paris and London.
"We want the world knocking on the door, to come and show us their best for rejuvenating the heart of Sydney."
The renewal corridor, comprising apartments, offices and public space, would stretch for three kilometres from the Goulburn Street car park in central Sydney to Macdonaldtown train station.
Mr Hazzard said the project would allow more crossings to unite Ultimo and Redfern, where the rail lines presently act as a "Berlin Wall" dividing the two suburbs.
The new links would help connect educational institutions such as the University of Sydney and the University of Technology, Sydney.
Significant heritage buildings along the corridor could be subject to "adaptive re-use".
To date, development has taken place above and around a small number of stations in Sydney such as Chatswood, Kogarah and Edgecliff.
Mr Hazzard said the 15- to 20-year project would help achieve targets set out in the draft metropolitan strategy, which calls for 114,000 new central Sydney jobs and tens of thousands of new homes by 2031.
"The supply of new housing would also be a key component, not only for the broad community but also for students," he said.
It coincides with a flurry of infrastructure activity in central Sydney, including Barangaroo and the Darling Harbour redevelopment.
This article first appeared on www.smh.com.au
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