Lendlease (ASX:LLC) has secured a prime development site at 175 Liverpool Street in Sydney’s central business district. The company plans to develop a $2.5 billion luxury residential tower, offering views of both Hyde Park and Sydney Harbour. Lendlease is an international property and infrastructure group with operations in Australia, Asia, Europe and the Americas. The company’s core capabilities are reflected in its expertise across development, construction, investment and management.
The project, which remains subject to certain conditions, is anticipated to comprise up to 300 apartments and approximately 2,000 square metres of retail space. Construction is scheduled to commence in financial year 2027, with completion targeted for calendar year 2030. In the coming weeks, Lendlease expects to execute a sell-down of up to 50 per cent of the project.
This sell-down aligns with Lendlease’s strategic approach of engaging in early capital partnering. The strategy aims to align the company with investors, generate fee income, and achieve more stable earnings. Lendlease has informed the market that the staged acquisition structure of the Liverpool Street project is expected to deliver returns that comfortably exceed its cost of equity.
In addition to these returns, Lendlease will also generate revenue through development and construction fees, as well as proceeds received at settlement. The Liverpool Street development follows Lendlease’s One Circular Quay project, which has achieved over 80 per cent sales by value, exceeding $2 billion.
