Construction colossus Lendlease and Japanese giant Mitsubishi Estate have combined their development might for an $850-million play to secure one of Australia’s most prized CBD sites.
In a joint venture coup, they have swooped on Sydney’s One Circular Quay—a mixed-use parcel spanning 4000 square metres and earmarked for two towers with an end value of $3 billion.
The project was orginally dreamed up by Chinese conglomerate Dalian Wanda with an ambitious amalgamation of the dress circle holding, including the landmark former Gold Fields House site.
It has been sold by AW Holding Group, an entity previously linked to embattled Chinese developer Evergrande.
The deal involves $800-million in upfront and deferred consideration with an additional $50-million payment subject to certain project outcomes.
Lendlease and Mitsubishi Estate have previously partnered on the One Sydney Harbour and Sydney Place developments, and Melbourne Quarter’s residential East Tower.
Mitsubushi Estate Asia currently holds a 19.9 per cent stake in the new joint venture but this will rise to 66.7 per cent, subject to conditions, leaving Lendlease with the remaining 33.3 per cent.
“We are truly excited to be a part of such an iconic project for Sydney and look forward to expanding our relationship with Lendlease as we work together to deliver One Circular Quay,” Mitsubishi Estate’s Australian head Yuzo Nishiyama said.
Lendlease Australia development managing director Tom Mackellar spruiked One Circular Quay would “elevate Sydney’s real estate market on the global stage”.
“With uninterrupted views of the Sydney Harbour Bridge and Sydney Opera House, a development of this standard, in this location, is an incredible opportunity and we look forward to bringing this iconic development to market,” he said.
Oner Circular Quay is scheduled for completion by mid-2027.
It is planned to comprise a 59-level luxury residential tower, designed by the late award-winning Australian architect Kerry Hill.
The proposed second tower, designed by Kengo Kuma & Associates, is to be developed as a 220-room Waldorf Astoria hotel, marking the entry of Hilton’s luxury brand into Australia.
