Highlights

  • Lendlease secured a ~$1.5 billion contract to construct the Hunter Street metro station alongside a major over-station development.
  • The 52-storey West Tower is expected to carry an end value of about AUD 2.2 billion on completion.
  • The project is scheduled to commence in FY27 and complete in 2032, aligned with the planned station opening.

Lendlease (ASX:LLC) has expanded its Australian development and construction workload after securing the Sydney Metro Hunter Street West Over Station Development, a major CBD project that includes delivery of a new metro station and a premium commercial tower. The contract adds scale to the group’s forward pipeline and positions the project for a multi-year delivery program aligned with Sydney Metro timelines.

Landmark Development in Sydney’s CBD

The Hunter Street West Over Station Development is located at the corner of George Street and Hunter Street in Sydney’s central business district. Central to the project is the West Tower, a 52-storey premium commercial building to be delivered by Lendlease. The tower is anticipated to provide up to 58,000 square metres of commercial space, complemented by around 1,000 square metres of retail area at street level.

The building is expected to target a 6 Star Green Star rating, aligning with sustainability benchmarks for new commercial developments in the CBD. Once completed, the West Tower is forecast to hold a gross end value of approximately AUD 2.2 billion.

Integrated Station Construction Scope

Alongside the commercial development, Lendlease will deliver the Hunter Street metro station under a construction contract valued at around AUD 1.5 billion. The integrated scope combines station construction with the over-station development, forming part of the Sydney Metro network expansion.

The project is targeted to commence in FY27, with completion planned for 2032 to coincide with the station’s opening. This timeline places the development among the larger long-dated infrastructure and property projects currently scheduled in Sydney’s CBD.

Contribution to Development and Construction Pipeline

The Hunter Street project adds to Lendlease’s future earnings profile through development-related fees and construction income. The project structure is designed to limit capital intensity while targeting returns above the group’s cost of equity, consistent with its disciplined origination approach.

The contract contributes to the ongoing replenishment of Lendlease’s Australian development pipeline. It supports a target of more than AUD 10 billion in new development opportunities in FY26 and adds to an existing secured pipeline of approximately AUD 10 billion.

Broader Pipeline Activity Across Australia

Beyond Hunter Street, Lendlease is progressing discussions regarding the redevelopment of its RNA Showgrounds site in Brisbane, identified as the preferred location for the 2032 Olympics Athlete Village. The group is also nearing the end of a competitive tender process for a large residential metro development in Melbourne.

Lendlease shares were trading at AUD 5.33, up 5.34% on the day.