Australian Prime Property Fund Commercial
Established in 1994, the Lendlease managed Australian Prime Property Fund Commercial (APPF Commercial) is a core wholesale unlisted property trust, allowing institutional investors to benefit from exposure to a portfolio of prime commercial properties across Australia. The Fund seeks to deliver its target return and superior risk adjusted core returns to unit holders through the long term ownership, development and repositioning of quality, environmentally sustainable and predominantly core Australian commercial real estate assets.
The Fund invests in highly efficient, flexible and sustainable commercial assets, which predominantly:
- Are located in CBD office markets;
- Have balanced low-risk lease expiry profiles; and
- Have strong underlying tenant covenants.
The strategy looks to deliver its objectives via asset and market selection driven by research; portfolio diversification and scale, and strategic precinct selection.
Property PortfolioAPPF Commercial comprises a high quality portfolio of 18 predominantly Premium and A-Grade assets, covering a total of 709,000sqm of net lettable area.
In 2015, for the second consecutive year, the Fund was recognised as the number one Fund globally from 707 global participants in the 2015 Global Real Estate Sustainability Benchmark (GRESB) Survey.
lendlease advantageAPPF Commercial has the ability to secure quality, environmentally sustainable office assets in the Australian market through access to Lendlease’s office development capability and pipeline.
Lendlease's track record of developing commercial office buildings in Australia spans over 50 years. At the forefront of this experience is the Barangaroo South precinct in Sydney, Australia.
Through its unique access to Lendlease’s development pipeline, APPF Commercial holds investments in all three office towers at the Barangaroo South precinct.
Recent APPF Commercial projects that have been sourced through the Lendlease pipeline and developed and constructed by Lendlease have included:
This next generation commercial building is due for completion in mid/late 2017. Leased to CBA, the building will comprise 26,000sqm NLA office space with 1,600sqm of retail. It targets leading sustainability outcomes including 6 Star Green Star and 5 Star NABERS energy ratings. APPF Commercial owns 50% of the asset, alongside a mandate client.
International Towers Sydney, Tower One
Tower One is the tallest of the three office towers in the precinct and will comprise 108,000sqm over 48 levels. The Premium grade building is targeting leading sustainability credentials. APPF Commercial has a 25% interest in the Trust that holds Tower One of International Towers Sydney.
International Towers Sydney, Towers Two and Three
Tower Two is a 90,111sqm premium grade office tower, with 41 levels. Tower Three will be a Premium grade, 38-level office tower of 82,431sqm. APPF Commercial will hold a 25% interest in the Trust that holds Towers Two and Three of International Towers Sydney.
Responsible Property InvestmentAPPF Commercial has a vision to be recognised as a world leader in the delivery of ESG outcomes in the Australian unlisted property sector. It acknowledges the sustainability aspirations of the broader Lendlease Group and is aligned with Lendlease’s key sustainability objectives.
The Fund has had a Responsible Property Investment strategy in place since 2009.
|Management & Policy||77%||98%||98%||-|
|Implementation & Measurement||82%||87%||92%||+5%|
|All GRESB participants||11 of 339||1 of 637||1 of 707||No change|
|Global, office||4 of 69||-||1 of 145||-|
|ASSET LEVEL||GREEN STAR DESIGN/ AS-BUILT RATING||CURRENT RATING3||2018 TARGET RATING1||CURRENT RATING3||2018 TARGET RATING2|
|1 Farrer Place - GovPT, Sydney||-||2.5||4.5||3||4|
|1 Farrer Place - GovMT, Sydney||-||3.5||4.5||3||4|
|420 George Street||5||5||5||4||4|
|1 O’Connell Street4||-||-||5||-||4|
|BTC (West Tower), Brisbane||-||5||5||3.5||4|
|BTC (East Tower), Brisbane||-||-||4.5||3.5||4|
|66 Eagle Street||-||5||5||4.5||4.5|
|825 Bourke Street||6||4.5||5||4||4.5|
|800 Collins Street||5||5||5||5.5||5.5|
|485 LaTrobe Street||46||4.5||5||4||4.5|
|Alan Woods Building||-||5||4.5||4.5||5|
|60 Flinders Street, Adelaide||5||4.5||5||2||4|
|80 Flinders Street, Adelaide||5||5||5||2||4|
|Flinders Link Carpark, Adelaide||N/A||N/A||N/A||N/A||N/A|
|International Towers Sydney - Tower Two||67||-||5.54||-||5.54|
|Towns Place Car Park||N/A||N/A||N/A||N/A||N/A|
|International Towers Sydney - Tower One||67||-||5.54||-||54|
|International Towers Sydney - Tower Three||67||-||5.54||-||54|
|Darling Square, Sydney||63||-||54||-||44|
|1 Minimum commitment 4.5 Stars per asset|
|2 Minimum commitment 4.0 Stars per asset|
|3 Ratings exclude Green Power|
|4 Target ratings post completion (12 months operation and required level of occupancy|
|5 Ownership share and area weighted average use exact rating not rounded|
|6 Design rating only for North building – 485 La Trobe Green Star rating|
|7 Design rating only|
|8 Targeted rating|