Lendlease is aiming to secure the redevelopment of the prized O’Connell Precinct in Sydney’s financial district. This project may include one of the tallest office towers in Australia. The company is competing directly with Charter Hall, another major developer, with both now in the final bidding stage. The successful bid would not only shape the future of the precinct but could also attract a major corporate tenant. Westpac is reportedly considering the location for its new 100,000 square metre headquarters.
The O’Connell Precinct is bordered by Bent, Spring and O’Connell streets. It offers a rare inner-city opportunity with potential for up to 155,000 square metres of high-grade office space. Interest grew after the Abu Dhabi Investment Authority, a co-owner, put its stake up for sale. This prompted Lendlease, acting through its unlisted APPF Commercial fund, to seek full ownership by buying out its partner.
Central to the proposal is a 309-metre skyscraper and an additional 72-storey tower that would create a modern commercial hub. The development aligns with Lendlease’s broader goal to exit international interests and focus on higher-yielding local prospects. The Sydney office leasing market is showing signs of recovery as organisations look for premium spaces, reinforcing developer confidence in the post-pandemic environment.
Westpac’s possible involvement brings added strategic weight to the project. With major companies prioritising staff retention through high-amenity office environments, the competition to secure marquee tenants is increasing. The bank is said to be considering the precinct alongside two other shortlisted locations for its headquarters beyond 2030.
Other developers are also advancing key CBD projects. These include Dexus’s 70-storey tower at Pitt and Bridge streets and Charter Hall’s $1.7 billion Chifley South development. Together with recent moves such as GPT’s $860 million purchase of a 50% stake in Grosvenor Place, these efforts reflect a broader reinvestment trend. Several prominent assets are changing ownership, pointing to a longer-term transformation in Sydney’s commercial property landscape.
