Offices to replace failed fun park

The $80 million Sega World - Australia's first indoor theme park - was launched in March 1997, marking the completion of final component of the $100 million Darling Harbour entertainment complex.

Sega World was designed to fuse the traditional fun park with high-technology games and rides and sat alongside the Rainforest Cafe and One World sports restaurants overlooking Tumbalong Park.

However, in November 2000 Sega World closed its doors and the remaining tenants, except for a McDonald's outlet, followed soon after. It has remained that way ever since. Demolition to make way for the new development will start immediately and is due to be completed in 2011.

Lend Lease will be the developer and the Commonwealth Bank will be the anchor tenant. This will be additional space for the bank: it is already moving into the refurbished Darling Park Tower 1, close to the Sega World site.

Once completed, the 58,000-square-metre development will effectively bookend the southern end of the Darling Harbour precinct with the Hungry Mile development to the north, as part of the Sydney Harbour Foreshore Authority's rejuvenation program.

With the Commonwealth Bank presence, along with PricewaterhouseCoopers in Darling Park Tower 2, and KPMG and Macquarie Bank at the nearby King Street Wharf, the area will be a new stronghold for the financial sector.

The bank is consolidating its staff - it now occupies 12 buildings across the CBD, including the Colonial tower at 52 Martin Place - into the new Darling Park office. It will retain its occupancy at the nine-storey flagship 48 Martin Place site, known as the Money Box,as well as space at Homebush and Parramatta.

Unlisted Lend Lease funds will finance and acquire the project in joint venture with one of its existing offshore institutional investment partners.

David Hutton, director of Lend Lease Development, said the Darling Walk project would be an extension of the group's development of the three office towers at Darling Park and Cockle Bay Wharf close to 15 years ago.