Lendlease, Mitsubishi form JV to acquire One Circular Quay in Sydney
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.”