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.

INVESTMENT STRATEGY 

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 Portfolio

APPF Commercial comprises a high quality portfolio of 18 predominantly Premium and A-Grade assets, covering a total of 692,300sqm of net lettable area.

In 2016, the Fund was recognised as the number three Fund globally from 759 global participants in the 2016 Global Real Estate Sustainability Benchmark (GRESB) Survey.

lendlease advantage

APPF 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:

Darling Square

Sydney

This next generation commercial building is due for completion in mid-2017. Leased to CBA, the building will comprise over 26,100sqm of office NLA, with 1,575sqm 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

Sydney

Tower One is the tallest of the three office towers in the precinct and will comprise 108,000sqm. This includes 48 office levels and three levels of retail. 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

Sydney

Tower Two is an 89,100sqm premium grade office tower, with 41 levels. Tower Three will be a Premium grade, 38-level office tower of 81,500sqm. APPF Commercial currently holds a 12.5% interest in the Trust that holds Towers Two and Three of International Towers Sydney.

Responsible Property Investment

APPF 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.
Global Real Estate Sustainability Benchmark (GRESB)
APPF Commercial has participated in the Global Real Estate Sustainability Benchmark (GRESB) since 2011.

The Fund was ranked as the number one fund in Australia and third fund globally from 759 global participants in the 2016 GRESB assessment. The Fund's global ranking of third has exceeded its stated 2018 target of ranking in the top five of all GRESB participants globally.

   2011  2015 2016 2016 change
GRESB Scores        
Overall score  80% 93% 93% No Change
Management & Policy  77% 98% 92% -6%
Implementation & Measurement  82% 92% 93% +1%
GRESB Rankings        
All GRESB participants  11 of 339 1 of 707 3 of 759 ↓ 2 places
Global, office  4 of 69 1 of 145 3 of 173 ↓ 2 places
Oceania, office - 1 of 9 1 of 18 No Change
Green Building Certification
Green building ratings for each asset as at 31 December 2016 are disclosed below:
    NABERS ENERGY
NABERS WATER
ASSET GREEN STAR DESIGN/
AS-BUILT RATING

GREEN STAR
PERFORMANCE
RATING

CURRENT
RATING
2018 TARGET
RATING1
CURRENT
RATING
2018 TARGET
RATING2
Darling Quarter, Sydney 6 Star 6 Star 5.5 5.5 4.0 5.0
1 Farrer Place - Gov. Philip Tower, Sydney  - 2 Star  3.0 4.5 2.5 4.0
1 Farrer Place - Gov. Macquarie Tower, Sydney  - 2 Star EXEMPT 4.5 2.5 4.0
1 O’Connell Street, Sydney  - 3 Star 4.5 5.0 3.5 4.0
BTC (West Tower), Brisbane  - 3 Star 5.0 5.0 6.0 4.0
BTC (East Tower), Brisbane  - 3 Star EXEMPT 4.5 EXEMPT 4.0
66 Eagle Street, Brisbane  - 4 Star 5.0 5.0 4.0 4.5
800 Collins Street, Melbourne 5 Star 3 Star 5.0 5.0 5.0 5.5
485 LaTrobe Street, Melbourne 4 Star3 3 Star  4.0 5.0 3.5 4.5
Alan Woods Building, Canberra  - 3 Star  5.0 4.5 4.0 5.0
60 Flinders Street, Adelaide 5 Star 2 Star 4.5 5.0 3.0 4.0
80 Flinders Street, Adelaide 5 Star 2 Star 5.0 5.0 4.0 4.0
Flinders Link Carpark, Adelaide N/A  N/A N/A  N/A  N/A  N/A 
International Towers Sydney - Tower One 6 Star4 - 5.55 - 5.05
Towns Place Car Park, Sydney N/A  N/A N/A  N/A  N/A N/A
International Towers Sydney - Tower Two 6 Star4 -  -  5.55  -  5.05
International Towers Sydney - Tower Three 6 Star4 -  -  5.55  -  5.05
International House Sydney 6 Star6 -  -  5.05  -  5.05
Darling Square, Sydney 6 Star6 -  -  5.05  -  4.05
Melbourne Quarter 1, Melbourne 6 Star6 - - 5.05  -  4.05
PORTFOLIO AVERAGE  -  4 Star 4.87 5.1 4.17 4.7
 
1 Minimum NABERS Energy commitment 4.5 Star per asset, excluding GreenPower.
2 Minimum NABERS Water commitment 4.0 Star per asset.
3 Green Star Design rating only for North building.
4 Green Star Design rating only.
5 NABERS target ratings at post completion (after meeting required occupancy threshold levels and 12 months continuous utility data).
6 Green Star target rating.
7 Area and equity adjusted portfolio average performance, excluding unrated or pending rating assets.