Construction is underway on the second and final stage of Capella Sydney which will see further development of state-significant heritage-listed buildings to establish larger-scale event and meeting spaces, curated retailers, and signature food and beverage venues.
Australian construction group Built has commenced stage two of the Sandstone Precinct restoration project by Pontiac Land Group, extending Capella Sydney into a mixed-use development that is expected to become one of the largest privately-funded tourism infrastructure projects in New South Wales and one of the largest job-creating foreign investments in Sydney.
The heritage-listed 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.
Stage one, which was revealed in March 2023, included the completion of Capella Sydney’s 192 guest rooms, amenities and select food and beverage establishments, all of which are housed within the former Department of Education building.
Stage two, the final stage of the project, is focused on the adjacent Department of Lands building across Loftus Street and is expected to be completed in 2026.
“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.”
The project will include the sensitive strip out and refurbishment of heritage features across seven levels, as well as a structural upgrade of the building, utilising a hybrid of existing, heritage, and new construction materials.
Built said the “once-in-a-lifetime project” will set a benchmark for how underutilised public assets are reactivated for the future 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,” said Built CEO and Managing Director, Brett Mason.
“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.”