Learn about the Development Agreement with Lendlease to build the southern precinct of Barangaroo.
Lendlease was selected as the preferred developer for Barangaroo South by the Barangaroo Delivery Authority in December 2009. This gave Lendlease the right to build commercial, residential, retail, hotel floor space and public domain within the project area known as Barangaroo South (approximately one third of the site).
Buildings in the southern precinct began opening in 2016, and by mid-2017 the remaining sections to be completed were the public domain in the area known as Stage 1b (as at June 2017, this was subject to planning approval) and the Crown Sydney Hotel Resort.
Lendlease lodged its initial Concept Plan Amendment Application mid-2010 and received approval for it in December 2010. Progressive amendments to the Concept Plan, all of which have maintained the sustainability and public open space objectives set out in the original agreement, have since been assessed by the Department of Planning.
Barangaroo South Development Agreement
The Project Development Agreement enshrined key public expectations regarding Barangaroo, including a world-class public domain, international-benchmark sustainability targets and retention of land ownership by the public. The Agreement allows Lendlease to develop leasehold buildings. The three International Towers Sydney, retail and residential buildings are subject to 99 year leases. The public spaces in the southern precinct are retained in public ownership for the benefit the people of New South Wales, and are managed by the Authority. The Agreement also guarantees that the land title remains in public ownership.
Expressions of Interest were invited from architects and developers from around the world to design and develop the first stage of Barangaroo. The criteria that the consortia needed to address were:
In September 2008 three proponents were given until 31 March 2009 to submit their plans for the site. On 11 August 2009, the NSW Government announced it had invited Brookfield Multiplex and Lendlease to submit more detailed bids.
These final phase bids were lodged in November 2009 and on 20 December 2009, the Government announced that Lendlease had been selected to develop and create the $6 billion Stage 1 development.
On 5 March 2010, the Barangaroo Delivery Authority released a summary of the Issues of Principle which described those areas of the winning design from Lendlease, where further work was required to satisfy the important public aspects of the plan.
At this same time, the Authority entered into a Project Development Agreement with Lendlease which detailed financial arrangements. These include substantive fixed payments to the State over a minimum of 10 years. Other financial features include the potential to share in the project's financial success through additional value payments, and strong financial security with bank and Lendlease guarantees.