Lendlease Advances Rozelle Bay Mixed-Use Real Estate Development Proposal in Sydney

Lendlease has announced the NSW Government has progressed its proposal to redevelop Rozelle Bay to Stage 2 of the unsolicited proposals process, marking a significant milestone in one of Sydney's most closely watched real estate development projects. The announcement, made April 26, 2026, positions the harbourside site as a potential source of up to 3,000 new and diverse homes — including affordable housing — on the edge of Sydney's central business district.

Rozelle Bay Real Estate Development: Scope and Timeline

Forming part of the broader Bays West precinct, the proposed Rozelle Bay redevelopment aims to deliver up to 3,000 homes, with a target of completing 1,000 of these homes by 2032. The proposal would account for more than 35% of the NSW Government's 8,500-home target across the Bays West precinct — a significant contribution to the state's housing supply agenda near the CBD.

Beyond residential delivery, the proposal includes a new pedestrian underpass connecting Rozelle Bay to the new Bays Metro Station and the broader Bays West precinct. The development also aims to unlock waterfront access, delivering a publicly accessible foreshore that enables a continuous harbour loop and strengthens connections to surrounding neighbourhoods.

Lendlease projects the redevelopment would generate more than $1 billion in net economic benefits to New South Wales over the project's life, while increasing long-term housing supply close to the CBD.

Lendlease's Track Record in Large-Scale Urban Renewal

As a long-term leaseholder at Rozelle Bay, Lendlease is drawing on its history of delivering large-scale, mixed-use urban renewal projects in partnership with government. The firm points to two precedents in particular: Barangaroo South, a 15-year transformation that revitalised Sydney's waterfront, and Darling Square, the redevelopment of Darling Harbour that delivered a new residential neighbourhood with 1,500 homes and 1,300 student accommodation beds in approximately seven years.

Tony Lombardo, Group CEO of Lendlease, said the Stage 2 progression reflects alignment between government and industry priorities. "The progression of the Rozelle Bay proposal marks an important milestone and reflects the shared focus of government and industry on increasing the supply of well-located homes," Lombardo said. "It builds on Lendlease's long history of creating city-defining precincts that deliver lasting value for communities."

Claire Johnston, CEO Development at Lendlease, framed the opportunity in terms of integrated urban planning. "Rozelle Bay represents a rare opportunity to create a new waterfront neighbourhood that brings together new and diverse homes, world-class public transport and community in one of Sydney's most well-located inner-city locations," Johnston said. "We look forward to working collaboratively with the NSW Government to explore how best to deliver much-needed housing, enhanced public connections and significant community benefits, aligned with the Government's vision for the Bays West precinct."

Next Steps: Stage 2 Process and Community Engagement

Under Stage 2 of the NSW Government's unsolicited proposals process, Lendlease will continue to work collaboratively with the government to refine the proposal. Future planning processes are expected to include opportunities for community engagement and public feedback, the firm said.

Further information about the proposed redevelopment is available at www.rozellebay.com.

Sources

Lendlease — Lendlease Welcomes Progress on Rozelle Bay Redevelopment Proposal (April 26, 2026)