Lendlease, an Australian real estate company, has formed a joint venture (JV) with Mitsubishi Estate Asia for acquiring the One Circular Quay development in Sydney in a deal worth up to AUD 850 million ($577.1 million).

The consideration is made up of an upfront payment of about AUD 800 million ($543.17 million) and an additional AUD 50 million ($33.95 million) in deferred payment subject to some project outcomes.

One Circular Quay is likely to house a luxury residential tower with 59 levels and a second tower to be developed as a luxury hotel with 220 rooms.

The real estate project in Sydney, which has a projected development end value of around AUD 3 billion ($2 billion), will begin immediately. The One Circular Quay development is expected to be wrapped up in FY27.

Presently, Mitsubishi Estate Asia has a stake of 19.9% in the joint venture. Subject to the meeting of some conditions, the stake will move up to 66.7%, while Lendlease’s stake will come down to 33.3%.

Tony Lombardo — Lendlease Global CEO and Managing Director said: “The acquisition of One Circular Quay is consistent with our objective of replenishing the Australian development pipeline and working with investment partners to improve return on invested capital.”

  Australia, Lendlease, Mitsubishi Estate Asia, One Circular Quay, Real estate industry news, Sydney, Tony Lombardo