11 December 2012 — Lend Lease and Destination Sydney will work with Infrastructure NSW to enter into a $1 billion Public Private Partnership to design, construct, finance, maintain and operate the Sydney International Convention, Exhibition and Entertainment Precinct.

Lend Lease’s project management and construction business will design and build the precinct, as part of the Destination Sydney consortium consisting of Lend Lease, HOSTPLUS, Capella Capital, AEG Ogden and Spotless.

Lend Lease’s infrastructure development business, Capella Capital, will act as Public Private Partnership development manager and financial advisor to the consortium.

The PPP capital commitments are fully underwritten, and Lend Lease will invest 50 per cent of the equity alongside the national industry super fund for tourism and hospitality, HOSTPLUS, with debt being provided by a syndicate of local and overseas banks.

In addition, Lend Lease will work with INSW to enter into Project Development Agreements to develop a mixed use site of approximately five hectares next to the SICEEP site with an anticipated end development value in excess of $1.5 billion.

The mixed use site includes a landmark hotel of up to 900 rooms and about 1400 residential apartments, 23,000 square metres of student accommodation, 7000sqm of retail, 15,000sqm of commercial space, a 400-bay public car park, and up to 2000sqm of community space and public realm upgrades.