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Developer Lendlease (ASX: LLC) has secured a site at 175 Liverpool St overlooking Hyde Park in Sydney where it plans to build a luxury apartment complex with joint venture partners at an estimated end value of $2.5 billion.
The project at the southern end of the park, anticipated for a 50 per cent selldown in the coming weeks, is anticipated to comprise 300 apartments for sale and 2,000sqm of retail space.
Conditions are still precedent for settlement on the 3,750sqm site, where Lendlease is planning residences that offer north-facing expansive views across 16 hectares of green space through to the Opera House and Sydney Harbour.
Lendlease aims to start construction in 2027 with a planned completion in 2030. The acquisition has been structured as staged payments, with the project expected to deliver returns "comfortably above" the group's cost of equity.
The acquisition builds on other milestones for Lendlease in Sydney's luxury residential market, including the completion of One Sydney Harbour where a new sales record was set for a penthouse, and sales at One Circular Quay (OCQ) surpassing $2 billion, or more than 80 per cent of the expected total.
With Lendlease’s share of OCQ profits expected in FY27 the Group remains focused on extending its pipeline of opportunities in Australia for FY28 and beyond.
One Darling Point also received development approval last month, progressing Lendlease’s portfolio of luxury projects in desired locations.
"This is 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," says Lendlease CEO for development, Tom Mackellar.
"Centrally located overlooking Hyde Park with views of Sydney’s iconic landmarks, 175 Liverpool Street demonstrates how exceptional developments that redefine the city can be realised through our deep residential expertise."
Lendlease group CEO Tony Lombardo says the acquisition of the Liverpool Street site provides a further opportunity to build on the company's "market-leading credentials" in the luxury residential space, restocking its Australian development pipeline beyond FY27.
"The successful completion of One Sydney Harbour, which set a new sales record for a penthouse, and sales achieved to date at One Circular Quay, on track for completion in FY27, reflect the strong demand for high end luxury offerings in Sydney that complement Lendlease’s core capability of delivering urban renewal through the creation of mixed-use precincts," Lombardo says.
"As we continue to make strong progress simplifying the Group, our focus is firmly on growth opportunities across our Australian operations and international investment management platform, as evidenced by $3 billion of Australian development re-stocking and $1.5 billion of new investment mandates in the past year, drawing upon strong existing relationships and new international partnerships."
Meanwhile, a large-scale capital recycling process continues and Lendlease has been simplifying the group with the removal of regional management structures and the exit of international construction operations in the US, UK and Asia.
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