The New South Wales (NSW) government is partnering with the consortium, which includes Lend Lease, Capella Capital, AEG Ogden and Spotless, to redevelop a 20ha precinct at Darling Harbour. The public-private partnership (PPP) involves Lend Lease investing 50% of the equity alongside the national industry ‘super fund’ for tourism and hospitality, Hostplus.
Through the PPP, Darling Harbour Live has been contracted to design, build, finance, operate and maintain Australia’s largest and first fully integrated convention, exhibition and entertainment facilities. The facilities, combined with improvements to the public areas at Darling Harbour, have a capital cost of about $1bn (£687m).
“Reaching contractual close is an important milestone for this project, which will generate about $5 billion in economic benefit for NSW, create jobs for 1,600 people during construction and provide ongoing employment for 4000 people across the precinct,” said NSW deputy premier Andrew Stoner. “This is the first private public partnership in NSW since 2008, demonstrating that this Government has created the right environment for investment confidence in this state.”
In addition, two separate project development agreements have been reached with Lend Lease to build a hotel of up to 900 rooms on the northern part of the precinct as well as a new city neighbourhood in the Haymarket in the south.
The NSW Government remains the owner of the core convention, exhibition and entertainment facilities as well as the land covered by the hotel and commercial development in the Haymarket. All three agreements are conditional on planning and other relevant approvals.
The contracts 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 20ha precinct.
Darling Harbour Live was announced as the preferred consortium on December 11 last year following a highly competitive bid and subsequent tender process. In partnership with NSW Treasury, Infrastructure NSW has been leading contractual negotiations since that time.
The area is already one of the most popular destinations in Australia with 25 million visitors each year. “Our objective is to revitalise Darling Harbour so that we build upon the unique features of an iconic part of our global city and make it a more compelling place to visit for international visitors as well as locals,” said Stoner.
Darling Harbour Live 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 start of site works for the three year construction period.
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