This article is from the Australian Property Journal archive
THE Lendlease managed the Australian Prime Property Fund (APPF) Commercial has joined forces with First State Super to buy the Two Melbourne Quarter office development for $550 million.
At the same time, Two Melbourne Quarter has also secured EnergyAustralia as anchor tenant, the largest tenant to date for the $2.5 billion Melbourne Quarter precinct.
Construction will commence this month and EnergyAustralia has agreed to lease approximately 22,000 sqm of the 25-storey 50,000 sqm tower, taking up 10-and-a-half levels of the building’s high-rise floors.
This leaves approximately 12 contiguous floors remaining and the building features flexible 2,000 sqm floor plates and is expected to house up to 4,500 new workers.
First State Super and APPF Commercial will each hold a 50% interest in the tower, which will be developed by Lendlease.
APPF Commercial’s investment in Two Melbourne Quarter follows a recent equity raising and comes hot on the heels of the fund settling the sale of the Myer headquarters at 800 Collins St in Melbourne to Canada’s Manulife for $290 million.
The fund has also been active on the acquisition front, snapping 16 Spring St in Sydney’s CBD for $50 million, which adjoins Swire House at 10 Spring St, which the fund acquired in September for $270.05 million.
Last month the fund acquired the Myer distribution centre in Altona North in Melbourne for $38.15 million.
Two Melbourne Quarter is the second of three commercial towers planned for the precinct. The first tower, the 13-storey 26,400 sqm One Melbourne Quarter, was acquired by APPF Commercial in 2016 for around $250 million. It is 90% leased and on schedule for completion later this year.
APPF Commercial fund manager Scott Mosely said its investment in Two Melbourne Quarter follows its recent over-subscribed equity raising.
“It positions the fund to continue executing its strategy to invest in efficient, highly-sustainable, next generation office buildings in precincts with superior amenity and connectivity.” Mosely said.
“The Melbourne Quarter precinct is one of the largest urban regeneration developments in central Melbourne and will not only benefit the city but also members of First State Super,” First State Super CEO Michael Dwyer said.
“As one of Australia’s largest superannuation funds we look to invest in the communities in which our members live, work and retire. We have around 200,000 members living in metropolitan and regional Victoria and are committed to ensuring long-term sustainable returns for their retirement savings. We are confident that Two Melbourne Quarter will contribute to this.” Dwyer conclude.
Australian Property Journal
