
Sydney’s Sandstone Precinct Takes Shape at Capella
The former Department of Lands building reopens as a luxury hub for dining, culture and private membership.
A MAN ON A MISSION, or likely just lunch, cuts through the crowd at speed. At the same time, streams of suits slip past, swipe cards, KeepCups and phones balanced in one hand. There’s forward momentum, a pulsating purposefulness. Unlike many business districts that have fallen silent in the Work from Home era, or empty out from Thursday night to Monday morning, this northern pocket of Sydney’s CBD—the three or so blocks of office buildings, bars and banks between Martin Place and Sydney Harbour—hums like this seven days a week.
“We’ve got Circular Quay just 150 m down the road, and Loftus Street and Loftus Lane across the road are entirely residential,” says Marc von Arnim, general manager of Capella Sydney. “It’s great because there’s always life here.”
It is an exuberance that Capella—which introduced its first and only Australian outpost here in 2023, recently ranked Oceania’s top hotel by The World’s 50 Best —seeks to both capture and contribute to as it enters its latest evolution. Following a decade-long restoration, the group is now unbolting the doors to The Lands By Capella, a luxury lifestyle complex grounded in the experiential. Directly across from Capella Sydney, the grand 10,000 m² sandstone building—home to the New South Wales Department of Lands for over a century—is being gradually revealed, piece by piece.

Since February, events have started to take place under the soaring ceilings of the ballroom, bathed in natural light that streams through the wall of original ceiling-height arched cedar windows. It’s the largest of five event spaces that take up the entirety of the building’s second floor, and can hold up to 250 invitees. Upstairs, and also operational since February, The Sandstones Club by Florence Guild unfolds across two levels. Members pay $30,000 a year for access to an experience somewhere between a WeWork and Casa Cipriani, complete with office spaces, an uber-luxe piano lounge and, in keeping with the times, a biohacking boudoir.
From May, the ground floor will open to the public to breeze through as they please. Anchored by Spezia—also by Florence Guild—and set to resemble something akin to Milan’s 10 Corso Como, a pre-opening walk-through reveals an airy Italian eatery spilling into a peaceful internal courtyard, with high-end boutiques set to frame the space. Details of retail partners remain under wraps, yet the calibre of tenants already at Capella Sydney suggests the precinct will be notably rarefied. Swiss watchmaker Richard Mille, often dubbed the “billionaire’s handshake”, unveiled its first Australian store last November, complete with a meditation room and sports bar.
Stewarded by the prominent Singaporean Kwee family—the force also behind Patina Hotels & Resorts and an expanding branded residences portfolio—The Lands by Capella is the first of its kind for the group, envisioned as something both distinct and deeply tied to Sydney. “The original idea was for both buildings to operate as hotels, one a Capella, the other a Patina,” explains von Arnim. But shortly after the family’s Pontiac Land Group secured the rights to the two former government offices, it became clear the Department of Lands edifice wouldn’t be viable as a hotel. The plan shifted instead towards a public precinct, conceived as both an extension and an evolution of Capella. “We’re always looking for different ways to bring things to life,” he adds.

The building’s heritage lends it an unmistakable glamour. The history embedded in its walls creates a sense of occasion that feels authentic and alive to everything that came before. Exposed copper pipes snake up the white courtyard walls, wooden directory boards and antique relief maps of New South Wales appear like accidental artworks. Each level is united by a grand staircase with its wrought-iron balustrades intact.
The timing of the opening feels fortuitous. The CBD’s revitalisation—set in motion by the pedestrianisation of George Street, the launch of the light rail, and the arrival of late-trading venues such as The Caterpillar Club—found its stride in 2025 with the debut of Martin Place’s new metro station. “I have to give it to the City of Sydney. They had a master plan,” says von Arnim, pointing to the conviction that allowed Capella to take the long view and see out the decade-long development of what will be known as the Sandstone Precinct, even through the uncertainty of the Covid-19 pandemic. “There will be an element of education as people come to know it,” he adds, looking to the months ahead. “It was very hard to sell this building on paper. You have to get people inside to understand it, to experience it, to feel it.” Consider that a cordial invite.

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Courtesy of Patricks










