Set within the former Department of Lands building, the project repositions one of the city’s most distinguished civic landmarks as a layered hospitality and events destination — an architectural recalibration that foregrounds both continuity and reinvention.

With the venue now open for private events ahead of a staged public rollout through 2026, the project marks a confident stride in Sydney’s adaptive reuse narrative.

Originally completed in 1876, this stunning Sydney sandstone structure has long commanded its corner at Circular Quay with a stately gravitas emblematic of colonial civic architecture. Its restoration and reimagining were led by Hassell in collaboration with heritage specialists Purcell Architecture.

Above: The original facade / Hassell

Together, the two firms orchestrated a harmonious symphony between preservation and insertion, all the while, calibrating contemporary interventions within the framework of its significant historical weight.

The Lands by Capella, together with Capella Sydney, a conversion of the former Department of Education building, anchors The Sandstone Precinct, one of the most substantial privately funded tourism infrastructure undertakings in New South Wales.

Above: The Lands by Capella, together with Capella Sydney, a conversion of the former Department of Education building / Supplied

Developed by Pontiac Land Group, the precinct occupies a pivotal urban site bridging Circular Quay, Macquarie, and George Streets, reactivating a previously insular government enclave into a porous civic and commercial destination.

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Image: Timothy Kaye / Supplied

At its core, the project is a masterclass in adaptive reuse. The 19th-century facade has been meticulously conserved, its carved sandstone and classical detailing returned to prominence. Internally, ornate plasterwork, grand staircases and ceremonial rooms have been restored with forensic precision.

Within this heritage envelope, a series of contemporary architectural insertions introduce new circulation paths, services and spatial experiences that are clearly legible yet deferential to the building’s original hierarchy.

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Image: Nicole England / Supplied

Organised across six levels and structured around two internal courtyards, the 10,000-square-metre development unfolds commands its CBD space with ease.

The ground plane is conceived as an open, permeable retail and hospitality environment, inviting the public into a building long closed to the city. Upper Ground and Level 1 accommodate club workspaces and guest amenities, extending the hospitality program into semi-private domains.

Above: Capella's heated indoor pool / Capella Hotels

On Level 2, the former grand drawing rooms have been reimagined as heritage function suites, poised to become one of Sydney’s most coveted addresses for high-end events.

Here, restored decorative ceilings and period proportions frame contemporary lighting and services with restrained clarity that reinforces the building’s ceremonial lineage.

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Image: Nicole England / Supplied

Within the building’s iconic domed pavilions, destination bars will offer panoramic views across Sydney Harbour, encompassing the Harbour Bridge and Opera House. These elevated spaces introduce a new experiential layer to the precinct, transforming previously inaccessible areas into vantage points that reconnect the architecture with its broader urban and maritime context.

Throughout the design and construction process, Property and Development NSW maintained custodianship of the State Heritage-listed asset, ensuring rigorous adherence to conservation protocols.

For Purcell Architecture, the task was as much interpretive as technical: to safeguard the legibility of the building’s historical narrative while enabling new layers of occupation and meaning to add to what is now a quintessential Sydney landmark.

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Image: Timothy Kaye / Supplied

By reactivating a stunning civic relic as a contemporary hospitality destination, The Lands by Capella demonstrates how heritage buildings can be repositioned within both the built environment and urban economy.

In doing so, it secures the sandstone landmark not merely as an artefact of Sydney’s past, but as an enduring participant in its future.

Main image: Hassell / Supplied

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