Lendlease has revealed its latest luxury project that will join its flagship One Circular Quay development in central Sydney.
The prolific developer told the ASX that it had acquired a site at 175 Liverpool Street from its Chinese billionaire owner and earmarked it for two luxury residential towers.
The acquisition, for an undisclosed sum expected to be detailed in a future ASX announcement by Lendlease, was made in partnership with joint venture partners who also remain unnamed at this stage.
The site was reportedly acquired in 2014 for $394 million by Shimao Group, a Hong Kong-headquartered development company owned by Chinese billionaire entrepreneur Wing Mau Hui.
Developer Sicard—Shimao chairpeople Wing Mau Hui and his daughter Carol Mei Mei Hui are listed as directors, according to ASIC documents—proposed a project for 169-183 Liverpool Street in 2019.
With Ethos Urban, Sicard submitted a concept plan for a 35-storey mixed-use building comprising 41,695sq m of residential, 8553sq m of commercial and 1023sq m of retail space.
That plan was approved in 2020. It was followed by a development application in 2022 that proposed the demolition of the existing tower in favour of two new towers of 35 and 30 levels.
Bates Smart designed the project, which detailed 167 apartments in Tower A and 122 units in Tower B to replace the 33-storey commercial building on the site.
It was approved in 2023 by the City of Sydney with a deferred commencement.
Lendlease said its project would consist of 300 units and 2000sq m of retail space.
It will have a gross end value of $2.5 billion, Lendlease said.
The developer will develop it alongside unnamed JV partners, and a selldown of up to 50 per cent of the project is expected “in the coming weeks”.
Lendlease told the ASX that the planned selldown “continues the approach of early capital partnering” to generate regular fee streams “and more predictable earnings for securityholders”.
The 3750sq m Liverpool Street site is at the southern end of Hyde Park. Major train stations and the new Metro are nearby.
The building currently has several vacant floors as well as tenants that incluce the Seven Group, BAE Systems, the Fair Work Ombudsman and Ticketek.
Construction of the 175 Liverpool Street project is planned to start in 2027.
The project comes after Lendlease was put under pressure by shareholders last year to come up with a new, more streamlined strategy to develop faster and focus on Australian activity, which led to its sale of its US East Coast construction operations last year.
Lendlease chief executive officer for development Tom Mackellar said it was “one of the most significant real estate acquisitions in the local market in recent times, and strongly aligns with our strategic growth plans in Australia where we continue to identify opportunities to expand our development pipeline”.
