Stockland, Lendlease face off in $4bn Waterloo housing estate overhaul

The race to develop Sydney’s $4bn Waterloo Estate housing project has narrowed to a contest between two big developers.

Amid criticism the project’s number of social and affordable homes in the first stage of development was increased. Picture: Supplied

The race to develop Sydney’s $4bn Waterloo Estate housing project has narrowed to a contest between consortia led by property heavyweights Stockland and Lendlease.

The massive project will be one of Australia’s largest social housing renewals and will have a mix of homes under a new plan that will see about half the 3000 planned residences devoted to social and affordable use.

Both companies are pushing deeper into undertaking large scale projects which provide a mix of private units and affordable and social housing as governments push for solutions to the housing crisis.

The model is more common overseas but is being taken up in Australia, partly to house pressed social tenants but also to spark development at a time when new launches are down.

The pair will face off in a final round at a time when large property companies have pivoted to areas like affordable housing as traditional commercial property like office towers and shopping centres come under pressure.

Artists impressions of the renewal of Waterloo Estate. Picture: Supplied

The NSW government had short-listed Stockland and Lendlease alongside others groups led by rivals Mirvac and Singapore-backed Frasers, but it has culled the later two contenders after about a year of consideration.

The NSW government said the final two candidates had now progressed to the final stage of procurement.

It comes as the government is under fire from social housing advocates about how the redevelopment plans will mean 1,000 tenants must move out, at a time of accommodation shortages.

In August the government boosted the number of social and affordable homes in the first stage of development at Waterloo South to 50 per cent – an uplift of up to 500 homes. Earlier plans would have seen just over one third of the 3,000 new homes devoted to social and affordable housing.

Stockland has Link Wentworth Housing, City West Housing and Birribee Housing, handling the community housing aspect. Lendlease is working with St George Community Housing.

The massive project will be one of Australia’s largest social housing renewals. Picture: Supplied

NSW Land and Housing Corporation acting chief executive Michael Wheatley said the ideal renewal partner would collaborate with government and the community to support residents through change and create a vibrant and mixed inner-city community with a real sense of place.

“This is a long-term renewal project that will be delivered over the next 30 years starting with the first stage at Waterloo South, so it’s important we find a renewal partner who is capable and committed to support us to optimise social housing, placemaking, community development and sustainability outcomes within the Waterloo community,” Mr Wheatley said.

“There has been an incredibly high calibre of applicants demonstrating the competitive interest in contributing to this monumental social housing initiative,” he said.

Mirvac was working with Community Housing Limited and Frasers Property was tied with Bridge Housing in the process.

“Our commitment to increasing the proportion of social and affordable homes in the Waterloo Estate is a significant step toward providing more and better housing for our residents, and we look forward to working closely with the successful consortium to make this vision a reality,” Mr Wheatley said.