Lend Lease announced on March 22, 2013, that contractual close has been reached with the NSW Government on the international convention, exhibition and events precinct project in Darling Harbour.

This follows the selection in December 2012 of Lend Lease and the Darling Harbour Live consortium as the preferred proponent. The consortium consists of Lend Lease, HOSTPLUS, Capella Capital, AEG Ogden and Spotless.

New Sydney's Convention Centre

Lend Lease 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, and Lend Lease will invest 50 per cent of the equity alongside the national industry super fund for tourism and hospitality, HOSTPLUS, with debt being provided by a syndicate of local and overseas banks.

The agreements have been executed with Infrastructure NSW, the agency managing the redevelopment on behalf of the NSW Government, and the Sydney Harbour Foreshore Authority (SHFA), the government agency that remains the landlord of the 20 hectare precinct.

The $A1 billion PPP is to design, construct, finance, maintain and operate the convention, exhibition and entertainment facilities, and the agreement is conditional on planning and other relevant approvals.

In addition, Lend Lease has executed Project Development Agreements with Infrastructure NSW and SHFA to develop a hotel, and a mixed use site of approximately five hectares within the precinct with an anticipated end development value of circa A$1.5 billion. These agreements are also conditional on planning and other relevant approvals.

Lend Lease recently lodged the first of several planning applications for the project as part of the assessment process, with the remaining applications to be submitted over the coming months. Financial close is expected in late 2013, followed by the commencement of site works.

Herbert Smith Freehills advised the Darling Harbour Live consortium on its successful bid to develop the project.

Source: Lend Lease