This article is from the Australian Property Journal archive
THE Qatar Investment Authority (QIA) has taken a major stake in Lend Lease's new $2 billion wholesale property fund, which will own Tower 1 at Barangaroo South.
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:”;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:”Times New Roman”,”serif”;
mso-fareast-language:EN-US;}
The Lend Lease One International Towers Sydney Trust is the second fund established to invest in the precinct, and will own the third and largest commercial tower, known as Tower 1.
QIA has committed to a 37.5% investment, the Lend Lease managed Australian Prime Property Fund Commercial (APPF Commercial) has committed to a 25% and Lend Lease will hold the remaining 37.5%, as a co-investor.
The fund will acquire 100% of Tower 1 with circa $1.4 billion of equity commitments from capital partners and circa $600 million of debt financing.
The building has been preleased to Marsh & McLennan Companies and Servcorp, with Marsh & McLennan Companies agreeing to approximately 10,400 sqm (4.5 floors) of space and Servcorp for 2,300 sqm, together with PwC and HSBC.
“I am delighted to announce the creation of a second investment fund for Barangaroo South, bringing the total equity raised across the precinct to $3.4 billion. We are introducing a new investor, QIA, alongside investors in the Lend Lease managed APPF Commercial,” Lend Lease CEO Steve McCann.
“We are pleased to have attracted new tenants to the precinct, taking us to 66% pre-leased across all three commercial towers,” he added.
The increase in core development earnings will be offset by a lower than expected contribution from transactional earnings (originally expected to be circa 20% of FY15 earnings) and a lower contribution to earnings from the Australian Construction segment.
McCann said Lend Lease remains comfortable with FY15 consensus expectations of Net Profit After Tax of between $604 million – $634 million.
Australian Property Journal
