The launch of The Lands by Capella marks a pivotal moment in the evolution of Sydney’s historic Sandstone Precinct. The adaptive reuse of the former Department of Lands building introduces a world-class hospitality venue into one of the city’s most revered heritage landmarks, with the space now available for private events ahead of a broader phased opening throughout 2026.

Originally constructed in 1876, the landmark sandstone building has long stood as a defining civic presence in Circular Quay. The restoration was led by international architecture practice Hassell, working alongside heritage conservation experts Purcell Architecture, with the structure carefully adapted to accommodate contemporary use. The Lands by Capella and Capella Sydney, another renovated Government building, form The Sandstone Precinct, one of the largest privately funded tourism infrastructure developments in New South Wales. Developed by Singapore-based Pontiac Land Group, the precinct occupies a prominent site at the intersection of Circular Quay, Macquarie and George Streets.

The Lands by Capella_Hassell_Timothy Kaye_1438_HR.jpg — *Photo: Timothy Kaye*

"The inaugural launch of The Lands by Capella is a significant milestone in the NSW Government’s vision for The Sandstone Precinct, turning a former government office building into a world-class hospitality destination,” says NSW Minister for Lands and Property, Steve Kamper. “This project is a masterclass in adaptive reuse, preserving our city’s most revered heritage while securing its future as a thriving economic hub."

The project has meticulously restored the 19th-century building’s grand facade and ornate interiors while introducing a series of modern architectural insertions. The result is a dynamic hospitality, retail and events destination that reopens a previously underutilised and largely closed-off government building to Sydneysiders and visitors.

The Lands by Capella_Hassell_Nicole England_80572.jpg — *Photo: Nicole England*

Organised around two central courtyards, the six-level development will house luxury retail, bars, restaurants, club workspaces and function rooms. The ground floor invites the public into an open retail environment anchored by a new hospitality venue. On the Upper Ground and Level 1, workspaces and amenities are provided for hotel guests and club members, while the former grand drawing rooms on Level 2 have been transformed into heritage function spaces set to become one of Sydney’s most sought-after luxury event venues.

At roof level, destination bars will occupy the building’s iconic domed spaces, offering sweeping views across the Harbour Bridge and Opera House and adding a unique dimension to Sydney’s luxury hospitality experiences.

The Lands by Capella_Hassell_Nicole England_80838.jpg — *Photo: Nicole England*

“This project is a powerful demonstration of how adaptive reuse can shape the future of our cities,” notes Hassell Managing Director Liz Westgarth. “We’ve reawakened the building’s grandeur by honouring its heritage and layering in contemporary design, setting it up for another century of prosperous life and enjoyment.”

The NSW Government’s property agency, Property and Development NSW, oversaw heritage protection requirements during design and construction, and retains custodianship of the State Heritage-listed building.

The Lands by Capella_Hassell_Timothy Kaye_0635_HR.jpg — *Photo: Timothy Kaye*

Weighing in on the heritage conservation aspect of the project, Purcell’s Director Tracey Skovronek says, “Our focus was to safeguard the historical significance of the former Department of Lands while enabling it to function as a contemporary public destination. Through careful conservation, restoration, and adaptation, we’ve ensured the building’s heritage values remain legible and respected, while allowing new layers of use and meaning to emerge.”

Spread across more than 10,000 square metres, The Lands by Capella stands as an exemplar of how heritage buildings can be thoughtfully reimagined and adapted for public benefit.

Main image: Photography by Timothy Kaye

All images supplied

Architecture News & Editorial Desk

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