Andrew Forrest’s investment arm snares Waldorf Astoria on Circular Quay

Andrew Forrest’s Tattarang is paying more than $500m for Australia’s first Waldorf Astoria hotel being built on Sydney Harbour.

Andrew Forrest's Fiveight business has bought the Waldorf Astoria Sydney at Circular Quay.

Billionaire Andrew Forrest’s private investment vehicle, Tattarang, will pay just over $500m to acquire Australia’s first Waldorf Astoria hotel, which will anchor a new civic and retail precinct about to be built on Sydney Harbour.

As revealed by The Australian last year, Tattarang will purchase Australia’s most expensive hotel, ensconced in a 220-room 25-level tower next to a luxury residential tower and part of the $3.1bn One Circular Quay tower being developed by Lendlease and Mitsubishi Estate Asia.

According to a statement from Tattarang, the long-term investment ensures one of Australia’s most iconic sites, and the centrepiece of the redevelopment of Circular Quay, is secured in Australian hands.

Construction will commence in June on the new 220-room hotel tower. It will be located alongside Lendlease and Mitsubishi Estate Asia’s $3.1bn One Circular Quay luxury residential tower which will offer “unrivalled views of Sydney Harbour Bridge (and) the Opera House”.

The hotel tower, designed by Kengo Kuma & Associates, will be constructed by Lendlease, and will be owned at completion by Tattarang’s property company Fiveight, which will work with Hilton and Lendlease to ensure a unique Australian design outcome.

Tattarang co-owner Nicola Forrest said the investment was a continuation of Tattarang’s long-term strategy to invest in and support top Australian infrastructure.

“Circular Quay is a globally unique and instantly recognisable location that continues to welcome millions of visitors from both near and far each year,” Mrs Forrest said in a statement.

“As long-term investors, we believe this development can play an important role in the future rejuvenation of the wider Circular Quay precinct and we are committed to engaging with Lendlease and the surrounding community towards an even brighter future for Australia’s gateway city.”

As part of the transaction, Fiveight will also own and develop the retail section at ground level which will feature 11 individual retail tenancies, including in the adjacent luxury residential tower.

“Fiveight will curate a truly unique retail offering to champion and showcase Australia’s best brands and products to the five million people who visit Circular Quay each year,” Mrs Forrest said.

Lendlease managing director development Tom Mackellar said the transaction was a significant milestone for the precinct’s revitalisation and would have restaurants, spa and wellness facilities, an indoor pool, ballroom and function spaces, boardrooms, and

a rooftop bar.

The hotel is due to open in late 2026 and is one of several hospitality assets Mr Forrest has been amassing of late. He recently – also through Tattarang – paid $42m for Lizard Island in Far North Queensland.

The Waldorf Astoria hotel is expected to be Australia’s most-high profile hotel, with room rates higher than rival nearby Park Hyatt on Sydney Harbour.

Lendlease was advised by Michael Simpson of CBRE and Sam McVay of McVay Real Estate.