Historic Sydney buildings to go in NSW government's assets sell-off The Department of Lands building in Bridge Street, Sydney, is one of the two historic properties expected to go on the market in the NSW government's asset sales. Picture: Attila Szilvasi TWO of Sydney's most historic landmarks, the Department of Lands building and the Department of Education building, are expected to hit the market as part of the NSW government's second tranche of asset sales. NSW Premier Barry O'Farrell will shortly announce four properties - including the Ausgrid building at 570 George Street - are for sale, with the cash-strapped government expected to reap at least $200 million from the sales. Mr O'Farrell, who is flying to Asia on Monday, is expected to spend some of his trip marketing the assets - particularly the Department of Lands building, which was once mooted as a potential home for a casino - to hoteliers and investors. "Barry will promote these buildings overseas to attract some international interest, the government is keen to attract hoteliers, the focus is to keep the Lands Building within the tourism sector," a source said last night. The whole idea is to promote it internationally with a focus on tourism. The government reaped $405m from the sale of the first tranche of assets, including the McKell building in Sydney's Chinatown to Queensland fund manager Cromwell Group earlier this year. The $405m sale price was $105m above initial estimates and will be ploughed into housing infrastructure in Sydney's west. The government is also thought to be considering selling the Chief Secretary's Building, another historic Sydney landmark housing the Governor of NSW's office and fronting Macquarie Street. Sources said the Chief Secretary's Building was being considered for its third tranche of asset sales, which will be announced later this year. The sandstone building was the seat of colonial administration and has been used continuously by the NSW government. Today its main occupant is the NSW Industrial Relations Commission. Further advanced, however, is the sale of the sandstone-clad Department of Education building, which is bounded by Bridge, Loftus, Bent and Young streets and Farrer Place. But for many, the jewel in the crown is the Department of Lands building, which is also in the heart of Sydney's financial district. The sandstone-clad structure, which could be converted into an opulent five-star hotel or high-end residential apartments, could reap as much as $80m. It is bounded by Bridge, Gresham and Bent streets. But agents warned that the sale price would depend on the difficulty of refurbishing it within the building's heritage guidelines. "If there was ever going to be a luxury five-star property in Sydney, the Department of Lands building would be the spot," said one senior property source, commenting on condition of anonymity. It is one of those sites for a Peninsula, Mandarin or Jumeirah, all the high-end brands that want to come into Sydney, it's at the correct end of town, it's near the harbour front. But it could probably also be converted for residential use in that location. Imagine what those apartments would be worth in that location. Completed in the late 19th century, the building was designed by colonial architect James Barnet. The building has large floors that are deemed too big for the Department of Planning and Infrastructure, the present tenant. The three-storey structure, which was developed in the Italian Renaissance Revival style, was built in different stages and was once Sydney's largest building. Fronting 23-33 Bridge Street, it was built by John Young, who designed nearby St Mary's Cathedral. The sale of the Department of Lands building was flagged by The Australian earlier this year.