Lendlease and Mitsubishi Estate Asia have acquired the One Circular Quay development in Australia for around A$800m (鈧�539m) from AW Holdings.
Lendlease will undertake the A$3bn development on Sydney鈥檚 harbour foreshore, which will include upmarket residential apartments and a luxury hotel.
Mitsubishi Estate will hold an initial stake of 19.9% in the joint venture, and, subject to the satisfaction of certain conditions, Mitsubishi Estate will lift its stake to 66.7% with Lendlease reducing its interest to 33.3%.
The Japanese investor is already a joint venture partner in the adjoining A$2.2bn Sydney Place project, which Lendlease is currently developing.
It is also a partner in two other projects - Lendlease鈥檚 Residences One, in Barangaroo, also on Sydney Harbour foreshore, and a fourth project in Melbourne.
Yuzo Nishiyama, head of Australia, Mitsubishi Estate Asia, said this joint venture further strengthened the long-standing relationship between Lendlease and Mitsubishi Estate.
Global chief executive officer and managing director, Tony Lombardo said: 鈥淭he 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.鈥�
Tom Mackellar, managing director of development, Lendlease Australia, described One Circular Quay as 鈥渦ndoubtedly one of the most desired addresses to live and stay in the world鈥�.
The transaction ends the chequered recent history of one of Sydney鈥檚 best-known sites, previously occupied by Gold Fields House.
In 2014, China鈥檚 Dalian Wanda Group bought Gold Fields House for A$425m to develop a billion-dollar project and when Dalian Wanda got into financial trouble, in 2018, the site was onsold to AW Holdings.
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