Property heavyweight Lendlease has emerged as one of the frontrunners to take on Sydney’s next major CBD development, in what could become one of the tallest office towers in Australia, a project also being considered by Westpac as its potential future headquarters.
According to The Australian Financial Review, bidding for the O’Connell Precinct has reached its final stage, with Lendlease and Charter Hall leading the pack. A decision on the winning bid could be announced as early as next week.
The proposed 309-metre tower, part of a 155,000-square-metre precinct in the heart of Sydney’s financial district, signals renewed confidence in the city’s office market, which analysts say is showing early signs of recovery.
The O’Connell Precinct opportunity arose after Abu Dhabi Investment Authority (ADIA), one of the site’s co-owners, sought to divest its stake. Real-estate firms JLL and CBRE have been managing the sale process. Lendlease’s own APPF Commercial Fund, which co-owns the site, is also in play — making the developer both the asset manager and a potential buyer for ADIA’s share.
The precinct, bordered by Spring, Bent and O’Connell Streets, includes the existing 1 O’Connell Street tower and several amalgamated sites. Plans envision a second 72-storey building, positioning the project among Sydney’s next generation of commercial landmarks.
Adding further weight to the development is strong tenant interest from leading corporations. Westpac, for instance, is reportedly seeking 100,000 square metres of office space for its Sydney operations from 2030 onward and has shortlisted the O’Connell Precinct as one of three contenders.
In recent months, Sydney’s CBD has seen a surge in major office investments, from GPT Group buying a half-share in Grosvenor Place, to upcoming sales decisions for Salesforce Tower (Sydney), 680 George Street, and 100 Mount Street in North Sydney.
As the market regains its footing, the O’Connell Precinct represents more than a new skyline addition. It’s a symbol of renewed optimism in Sydney’s commercial property sector, driven by a flight-to-quality, blue-chip tenant demand and confidence in the city’s long-term growth.
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