Lendlease Secures $3.7 Billion Hunter Street Development and Station Contract
Lendlease has landed a major contract to develop Sydney’s Hunter Street West Over Station, including a premium 52-storey commercial tower and metro station construction. This deal significantly boosts its development and construction pipeline ahead of FY27.
- Secured $2.2 billion West Tower commercial development
- Won $1.5 billion Sydney Metro station construction contract
- Project scheduled from FY27 to 2032 with 6 Star Green Star rating
- Adds to $10 billion secured Australian development pipeline
- Expected to enhance earnings via development fees and construction income
Lendlease Expands Sydney Footprint with Landmark Project
Lendlease Corporation has announced a significant win in Sydney’s property and infrastructure market by securing the Hunter Street West Over Station Development. This project includes the construction of a new metro station alongside a 52-storey premium commercial tower, known as the West Tower, located at the bustling corner of George and Hunter Streets in the Sydney CBD.
The West Tower is designed to be a prime-grade building, targeting a 6 Star Green Star rating, which underscores Lendlease’s commitment to sustainability and environmental standards. The tower will offer approximately 58,000 square meters of leasable commercial space complemented by around 1,000 square meters of retail area, positioning it as a landmark addition to Sydney’s skyline.
Financial and Strategic Implications
The project carries an anticipated gross end value of about $2.2 billion for the West Tower and a $1.5 billion contract for the station’s construction. Scheduled to commence in the 2027 financial year and complete by 2032, the development aligns with the metro station’s planned opening, ensuring integrated delivery of infrastructure and commercial space.
For Lendlease, this contract not only adds a substantial $3.7 billion to its development and construction pipelines but also enhances its future earnings profile through expected development management fees, performance incentives, and construction income. The company has emphasized a capital-efficient structure for the project, aiming to deliver returns above its cost of equity while maintaining disciplined origination practices.
Broader Growth Momentum and Pipeline
This win is part of a broader strategy to restock and grow Lendlease’s Australian development pipeline, which now exceeds $10 billion in secured opportunities. Alongside Hunter Street, Lendlease is advancing other significant projects, including the RNA Showgrounds site in Brisbane; set to be the Athlete Village for the 2032 Olympics; and is nearing the final stages of a tender for a large residential metro development in Melbourne.
Group CEO Tony Lombardo highlighted the company’s momentum, noting that the Hunter Street and 175 Liverpool Street residential developments have added approximately $5 billion to the Australian development pipeline in the first half of FY26. He also pointed to $4 billion in new construction work secured during the same period, reflecting a robust pipeline growth and a focus on strengthening the balance sheet.
As Lendlease continues to simplify its operations and focus on core Australian and international investment management platforms, this project marks a pivotal step in its growth trajectory and commitment to sustainable urban development.
Bottom Line?
Lendlease’s Hunter Street project sets the stage for a transformative Sydney development, with earnings and sustainability ambitions closely watched by investors.
Questions in the middle?
- How will Lendlease manage cash flow and capital allocation over the long project timeline to 2032?
- What are the risks and contingencies tied to the integration of the metro station and commercial tower delivery?
- How might this project influence Lendlease’s competitive positioning in future Australian infrastructure tenders?
