Lendlease and Mitsubishi Estate Asia have sold a luxury hotel development in southeastern Australia to Fiveight for A$575m (€369m).

The hotel is built alongside the A$3.1bn One Circular Quay development in Sydney.

As part of the deal, Fiveight, the property company of Tattarang, is also acquiring approximately 430sqm of ground floor retail across the hotel and residential buildings.

US hotel group Waldorf Astoria will manage the hotel which will be its first property in Australia.

Tom Mackellar, managing director of development at Lendlease Australia, said: “This landmark transaction with Fiveight is a rapid execution of our Circular Quay strategy and a major milestone for the precinct’s revitalisation”

Yuzo Nishiyama, head of Australia, Mitsubishi Estate Asia, said the partners would work closely with Fiveight developing the hotel and residential tower to further rejuvenate the greater Circular Quay precinct.

In July 2022, Lendlease and Mitsubishi Estate Asia formed a joint venture to acquire the One Circular Quay development for around A$850m. Mitsubishi Estate Asia holds a 66.7% interest in the joint venture, with Lendlease holding the remaining 33.3%.

Construction of the development is scheduled to commence next month and is anticipated to complete in late 2026.