Following the successful delivery of stage one in March 2023, Australian construction group, Built, has commenced construction on the next stage of the Capella Sydney Redevelopment by Pontiac Land Group.

Setting a benchmark for how underutilised public assets are reactivated for the future, Capella Sydney is a two-phase restoration project, comprising two state-significant heritage-listed buildings - the former Department of Education building and Department of Lands building – collectively known as the Sandstone Precinct. Stage one included the completion of the Capella Hotel guest rooms, amenities and select food and beverage establishments which are all located within the Department of Education building.

Stage two in the adjacent Lands building across Loftus Street will complete the precinct.

Once complete, the Sandstone Precinct will be a boost for local tourism with Capella Sydney extended into a mixed-use development with larger-scale event and meeting spaces, curated retailers, and signature food and beverage establishments, catering to both premium travellers and Sydneysiders.

“Significant trust has been extended to Pontiac Land to meticulously reimagine these historically important buildings and open them to the public for the first time,” said Pontiac Land Group Chief Executive Officer, David Tsang.

“The preservation of these buildings therefore requires a construction partner with in-depth knowledge of the historical significance and cultural value of the precinct.”

“Following the successful completion of stage one, Built had the proven expertise and award-winning hotel and hospitality experience to deliver the second stage of this complex heritage construction and refurbishment project,” he added.

The NSW Government Sandstone buildings were leased by Property and Development NSW to Pontiac Land Group in 2015 to allow for their adaptive reuse as a luxury boutique hotel, with lease proceeds reinvested into frontline government services and other infrastructure.

Built CEO and Managing Director, Brett Mason, said the redevelopment of the Sandstone Precinct is a once in a lifetime project that will restore public access and give new life to two of Sydney’s most important heritage buildings.

“Having worked closely with Pontiac Land Group over the last seven years, we're very proud and grateful to be entrusted to bring the next stage of their vision to life.”

“With the incorporation of innovative and meticulous planning to preserve the heritage of the buildings, the project showcases Australian ingenuity in the construction and craftmanship,” added Mr Mason.

Built and Pontiac Land Group would also like to thank the NSW Government for its support on the delivery and revitalisation of the Sandstone Precinct. This project has proved to be a great example of how we can find new uses for the state’s beloved heritage properties to provide access to living, preserved examples of NSW’s colonial architecture.

Works will include the sensitive strip out and refurbishment of heritage features, as well as structural upgrade of the building. The project is seven levels and includes approximately 10,500m2 of GFA and construction will involve a hybrid use of existing, heritage, and new construction materials.

The extended Capella Sydney is expected to become one of the largest privately funded tourism infrastructure projects in NSW and one of the largest job-creating foreign investments in Sydney.

The Department of Lands building is targeted to be completed in 2026.

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