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Lendlease (ASX:LLC) and Mitsubishi Estate Asia form JV to acquire One Circular Quay

ASX 200, Real Estate
ASX:LLC      MCAP $4.588B
14 July 2022 17:32 (AEDT)
Lendlease (ASX:LLC) - Global CEO & Managing Director, Tony Lombardo

Source: Tony Lombardo/LinkedIn

Global property giant Lendlease (LLC) and Mitsubishi Estate Asia have formed a joint venture to acquire the One Circular Quay development for around $800 million.

Located in Sydney, One Circular Quay is expected to comprise a 59-level luxury residential tower with a second to be developed as a 220-room hotel.

Construction is underway and is expected to be completed in FY27.

Lendlease will receive an acquisition fee on settlement and earn development management and construction management fees.

Currently, Mitsubishi Estate holds a 19.9 per cent interest in the joint venture and subject to the satisfaction of certain conditions, it will increase to 66.7 per cent, bringing Lendlease’s ownership to 33.3 per cent.

“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,” Global CEO Managing Director Tony Lombardo said.

Lendlease has ended the day a slight 0.21 per cent in the green with shares trading at $9.60.

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