One Darling Point: Lendlease and Mitsubishi Estate Asia ink joint-venture deal to develop Edgecliff high-rise development
Marking their sixth joint venture, Lendlease and large Japanese investor Mitsubishi Estate Asia have signed off on a 50/50 stake in a $500 million development in Sydney’s eastern suburbs.
The 1748-square-metre plot at 136-148 New South Head Road, Edgecliff, was touted by Colliers as “one of the most significant sites offered to market in decades” prior to its sale last month – reportedly for $132.5 million – by international development company Anka Property Group.
It sits at a prominent intersection with Darling Point Road just three kilometres from the CBD, and has Sydney Harbour Bridge and skyline views.
Now dubbed One Darling Point, the luxury, residentially led mixed-use development’s height has tripled from the 46 metres of the initial plans. Twelve storeys are now planned, potentially reaching 60 metres. Projected floorspace is 8730 square metres, and it will have an affordable housing component.
Retail and commercial spaces still subject to planning. Nearby are fine-dining restaurants, upscale shops and the beach.
The location of Edgecliff train station and a shopping centre across the road boost its mixed-use, residentially led potential.
Lendlease will start construction in 2026.
Previous ventures between the company and Mitsubishi Estate Asia include One Sydney Harbour, One Circular Quay and Sydney Place, and Melbourne Quarter’s East Tower.
Lendease is under pressure to boost its list of residential projects in Australia, given more than half of its existing pipeline is made up of just two projects – One Sydney Harbour and One Circular Quay – it has been reported.
Lendlease chief executive of development Tom Mackellar said the Edgecliff acquisition supported the strategic growth of the company’s development pipeline in Australia.
“We continue to identify opportunities to unlock value in prime urban locations,” he said. “We look forward to working alongside our trusted development partner, Mitsubishi Estate Asia, to deliver high-quality housing to this highly connected and sought-after neighbourhood in Sydney’s eastern suburbs.”
Mitsubishi Estate Asia head of Australia Yuzo Nishiyama said the investment was “highly strategic” and would extend the strong success of the partnership.
“It also reinforces our commitment to do more with our partners in sectors that deliver attractive risk-adjusted returns for our Australian business,” he said.
“We look forward to making more investments in Australia’s residential market to help address the prevailing supply shortage.”
Last week, Lendlease global chief executive Tony Lombardo signalled the deal had been ironed out during the yearly results announcement.
Anka Property Group battled for rezoning to increase the height limit by 14 metres to 46 metres after it was initially knocked back in July 2022 by Woollahra Council.
Following successful rezoning, the council this year publicly backed the development.
It followed public submissions in which a majority of residents came out in support of the high-rise development, it was reported.
Anka Property Group director Vera Boyarsky said the sale was “a great risk-adjusted return”.
“It was a high benchmark for the value of other holdings in the area, of which we have a few,” she said.
