The Destination Sydney consortium consists of Lend Lease, Hostplus, Capella Capital, AEG Ogden and Spotless.
The consortium will work with Infrastructure NSW (INSW) to enter into a circa AU$1 billion public private partnership (PPP) to design, construct, finance, maintain and operate the convention, exhibition and entertainment facilities.
Lend Lease’s project management and construction business will perform the design and construction and Lend Lease’s infrastructure development business, Capella Capital, will act as PPP development manager and financial advisor to the consortium. The PPP capital commitments are fully underwritten.
In addition, Lend Lease will work with INSW to enter into project development agreements to develop a mixed use site of approximately five hectares adjacent to the site with an anticipated end development value in excess of AU$1.5bn. The mixed-use site includes a landmark hotel of up to 900 rooms and approximately 1,400 residential apartments, 23,000m2 of student accommodation, 7,000m2 of retail, 15,000 m2 of commercial space, a 400 bay public car park, and up to 2,000 m2 of community space and public realm upgrades.
Financial close on the project is expected in late 2013, followed by the start of site works in December 2013.