An almighty battle for one of Sydney’s prime real estate developments looks set to erupt soon as development giant Lend Lease calls in Jones Lang LaSalle to find a joint venture partner for its holdings at Circular Quay.
The real estate agent first became involved last year but interest in the $300 million-plus site has heated up after one of China’s largest developers, Dalian Wanda Group, snapped up the nearby Gold Fields House in January.
The Chinese group is in talks to buy two surrounding properties from Richard Gu’s AXF Group as it advances plans for a billion-dollar-plus apartment tower, while Mirvac Group and AMP Capital are also building an office tower at 200 George Street.
Now the focus has shifted to Lend Lease’s plans for a new skyscraper in the area. The listed developer intends to build a 220m-high office tower on the site, by redeveloping a handful of buildings it has under option as part of the negotiations that saw Westpac shift to Barangaroo South.
This prime slice of Sydney real estate is already in for an overhaul given the plans for Gold Fields but if the Chinese group can snare Lend Lease’s properties it could really maximise the precinct’s value.
But the Australian developer appears keen on transforming the two ageing Westpac office buildings on the block, at 182 George Street and 33-35 Pitt Street, as well as the Jacksons on George hotel, into its next Sydney landmark project.
Whatever the outcome, Lend Lease is unlikely to want much more capital tied up in Sydney as it is one of three bidders in the Central Barangaroo tender, where it is facing separate bids from Mirvac and Grocon.
This article first appeared in The Australian Business Review.