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
  • 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 19 predominantly Premium and A-Grade assets, covering a total of 701,300 square metres of net lettable area (NLA).

In 2017, the Fund was ranked first globally of all 850 respondents in the 2017 Global Real Estate Sustainability Benchmark (GRESB) Assessment.

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

A next-generation commercial building leased to CBA, Darling Square comprises over 26,100 square metres of office NLA, with 1,600 square metres of retail. It targets leading sustainability outcomes including 6 Star Green Star and 5 Star NABERS Energy ratings. APPF Commercial owns 50 per cent 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 comprises 108,100 square metres of NLA. This includes 48 office levels and three levels of retail. The Premium grade building is targeting leading sustainability credentials. APPF Commercial has a 25 per cent interest in the Trust that holds Tower One of International Towers Sydney.

International Towers Sydney, Towers Two and Three

Sydney

Tower Two is an 89,300 square metres premium grade office tower, with 41 levels. Tower Three is a Premium grade, 38-level office tower of 81,700 square metres. APPF Commercial currently holds a 25 per cent 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 globally from 850 global participants in the 2017 GRESB assessment. The Fund's global ranking of first exceeds its stated 2018 target of ranking in the top five of all GRESB participants globally.

   2011  2016 2017 2017 change
GRESB Scores        
Overall score  80% 93% 96% +3%
Management & Policy  77% 92% 99% +7%
Implementation & Measurement  82% 93% 95% +7%
GRESB Rankings        
All GRESB participants  11 of 339 3 of 759 1 of 850 ↑ 2 places
Global, office  4 of 69 3 of 173 1 of 183 ↑ 2 places
Oceania, office - 1 of 18 1 of 19 No Change

Green Building Certification
Green building ratings for each asset as at 30 June 2017 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
1 Farrer Place - Gov. Philip Tower, Sydney  - 2 Star  - 4.5 2.5 4
1 Farrer Place - Gov. Macquarie Tower, Sydney  - 2 Star 3 4.5 2.5 4
1 O’Connell Street, Sydney  - 3 Star 4.5 5 3.5 4
BTC (West Tower), Brisbane  - 3 Star 5 5 6 4
BTC (East Tower), Brisbane  - 3 Star EXEMPT 4.5 EXEMPT 4
66 Eagle Street, Brisbane  - 4 Star 5 5 4.5 4.5
800 Collins Street, Melbourne 5 Star 3 Star 5 5 5 5.5
485 LaTrobe Street, Melbourne 4 Star3 3 Star  4 4 3.5 4.5
Alan Woods Building, Canberra  - 3 Star  5 5 4 5
60 Flinders Street, Adelaide 5 Star 2 Star 4.5 5 3 4
80 Flinders Street, Adelaide 5 Star 2 Star 5 5 4 4
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 - 55
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  -  55
International Towers Sydney - Tower Three 6 Star4 -  -  5.55  -  55
International House Sydney 6 Star6 -  -  55  -  55
Darling Square, Sydney 6 Star6 -  -  55  -  45
Melbourne Quarter 1, Melbourne 6 Star6 - - 55  -  45
PORTFOLIO AVERAGE  -  3 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 Portfolio average weighted by building are and the percentage ownership of the asset, excluding unrated rating assets.