The state government has sold Sydney’s NSW Trustees & Guardian building to the Lendlease managed Australian Prime Property Fund Commercial, which owns several neighbouring sites.
As part of the $93.5 million deal, the vendor will occupy the office, 19-21 O’Connell Street, until June, 2025.
After that, c1924 structure will be incorporated into a “city-changing, urbanisation” project, expected to be mixed-use.
In the pocket, APPFC controls 1, 8 and 10 Spring St and 23 O’Connell.
“It is government policy to consider viable opportunities to put assets to better use, to achieve the best possible social, economic and heritage conservation outcomes,” Department of Planning and Environment deputy secretary, Property and Development, NSW, Leon Walker, said.
“Lendlease…is in a unique position to revitalise this building and the wider area over the medium term,” he added.
Lendlease amalgamates again
The acquisition comes 10 months since the same fund paid $203m for a Melbourne CBD office, 469 La Trobe St, abutting another it owns in the street (#485).
With that deal, Lendlease controls a 5146 square metre block opposite Flagstaff Gardens, expected longer term to make way for a landmark residential project (the parcels are near 3L Alliance’s Queens Place, which is under construction and set to contain two 80 level towers).
Property and Development NSW, which managed the 19-21 O’Connell St sale process, will buy a replacement NSW Trustees & Guardian office (story continues below).
Proceeds will buy us new HQ: government
The O’Connell St building has been occupied by NSW Trustees & Guardian, formerly Public Trustees, since 1942.
“Proceeds from the freehold sale will be reinvested into the purchase of a new premises for NSW Trustee & Guardian that better suits its modern service delivery requirements to meet clients’ needs, including improved accessibility,” Mr Walker said.
“[The property] has been sold with a conservation management plan in place to secure its heritage values are protected and maintained into the future,” he added.
Record of city-changing urbanisation projects: Lendlease
Lendlease managing director, Investment Management, Scott Mosely, said the company “has a global track record of city-changing urbanisation, and we’ll continue to invest in creating sustainable and activated buildings as part of our next generation precincts strategy, that will deliver great places for our customers and community”.
“Nineteen O’Connell St and the surrounding area is well positioned to play a role in Sydney’s continuing evolution as a lading global gateway city,” he added.
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