Lendlease poised to build $1bn skyscraper atop Victoria Cross Station
Development and building giant Lendlease is poised to win the rights to develop the proposed Victoria Cross metro station in North Sydney that will be topped by a $1 billion tower.
The move would cement its grip on key integrated station projects in Sydney and help expand its office development empire.
The company has out-bid listed office heavyweight Dexus and Chinese-backed John Holland for the station and tower project.
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The play comes as North Sydney’s office market roars into life with Dexus building the new National Broadband Network headquarters and Winten developing a tower to be anchored by the Nine Network.
Aqualand Australia is also pushing ahead with a $1 billion-plus residential project that will see its Walker St office block replaced with a luxury apartment complex.
Lendlease, which is developing entire precincts around stations in London, has emerged as a big winner of complex integrated statin works that suit its model.
It is also the builder on Macquarie Group’s massive twin tower office project at Sydney’s Martin Place above the new metro railway station that will have an end value of about $3 billion.
Lendlease is also in the race to build two new mixed-use towers in central Sydney above the proposed Pitt St metro station. It is up against Canada’s Brookfield and local firm Grocon for the rights to develop units and a hotel.
Lendlease, Dexus and a John Holland-Charter Hall joint venture were short-listed by Sydney Metro to build Victoria Cross Station and a 230m commercial tower over the top of it in March.
The tower would eclipse the one in the neighbouring 1 Denison St being developed by Winten and become a new landmark in the area.
The tower would soar to 168m and have about 42 storeys in the high-rise portion and 13 storeys for the lower-rise eastern portion. It would have a gross floor area of 60,000sqm and basement carparking with 150 spaces.
The developer and the transport authority declined to comment yesterday. but the contract to build the tower and station is slated to be awarded by year end.
The project is due for completion by 2024 and would add to Lendlease’s book of local building work that is swelling as it pivots away from its exposure to the slowing Australian residential property market.
The group said it was well positioned for coming years with $6.5bn of backlog revenue and $4.4bn of new work secured, 70% from clients. There were no loss-making projects in the building business in Australia and the portfolio was balanced between risk and fee-based projects.
Lendlease is seeking to maintain its competitive advantage of being able to undertake complex development, infrastructure and building works.
“With our integrated capabilities, we will continue to pursue these and expect to be well-placed to secure additional work in fiscal 2019-20,” the company says.
This article originally appeared on www.theaustralian.com.au/property.
