O’Farrell vs. Lend Lease; #Barangaroo hotel development

The SMH this morning has outlined NSW premier Barry O’Farrell’s disapproval of the proposed hotel to be built at the end of an 85 metre pier incorporated into the Barangaroo Development.

The article explored Mr O’Farrell’s concern over the project that has been “plagued by a lack of transparency”.  Lord Mayor of the City of Sydney, Clover Moore, shared this concern when involved in the project under the previous Labour State Government.  The lack of transparency troubled her so much it resulted in her stepping down from the board of the Barangaroo Development Authority (BDA).  O’Farrell’s review of this project and attempt to ‘mend bridges’ with the City of Sydney has resulted in Cr Moore agreeing to provide a representative to sit on the board of the BDA again, an essential step for the successful development of this project.

Lend Lease, the developers of the project, have identified that government compensation will be necessary to change the location of the hotel in this development, whilst O’Farrell has suggested Lend Lease should make the changes at no extra cost, leading to what will potentially become an impasse between government and developers.

It will be interesting to see who will be the first to back down in this situation.  Lend Lease are driven entirely by commercial gain, hence suggesting that they’ll be very lax to make any decisions that could potentially damage revenue streams.  Though Premier O’Farrell has commercial imperatives to abide by, he also has a city of concerned citizens to please, and a need to get things done in his first year in office.  Hence in this situation it is my belief that Premier O’Farrell will have a greater need to provide results in a shorter timeframe, and hence will be more open to conceding on the matter.

To hear Mark Menhinnitt, CEO Australia of Lend Lease, speak about the most recent developments at Barangaroo click here.

To hear about the most recent ‘smart’ developments around Australia from companies including Frasers Property Australia, Australand, Westfield, The GPT Group and Brookfield Multiplex Australasia then click here.

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