Australian Prime Property Fund Retail

Established in 1989, the Lendlease managed Australian Prime Property Fund Retail (APPF Retail) is a core wholesale unlisted property trust, allowing institutional investors to benefit from exposure to a portfolio of prime direct retail 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 diversified, predominantly core Australian retail real estate assets.

Investment Strategy

The Fund invests in predominantly quality Major-Regional and Regional shopping centres across Australia, which:

  • Are key retail facilities in their trade area
  • Exhibit above average market characteristics
  • Have the capacity to be expanded over time

Property Portfolio

APPF Retail is the largest wholesale retail fund in the Australian market with gross assets of over A$5 billion.

The Fund's property portfolio comprises interest in 12 predominantly Major-Regional shopping centres, with approximately 2,800 tenants.

The Fund was recognised as the number two regional retail fund across 12 retail specific funds in Australia in the 2017 Global Real Estate Sustainability Benchmark (GRESB) Survey.

Lendlease Advantage

APPF Retail leverages Lendlease’s integrated end-to-end business model, providing asset management, development, construction and project management expertise.

Critical to the management of these centres is the master-planning process which is a preferred and proven growth model that incorporates the needs of the current retail asset and the surrounding community.

Recent and current APPF Retail projects that have been, or are being developed and constructed by Lendlease include:

Macarthur Square

New South Wales

The A$240 million redevelopment transformed the asset into south-west Sydney’s largest shopping centre. It will includes approximately 15,000 square metre of additional retail space, 45 new specialty stores, a new spacious al fresco dining precinct, in addition to the region’s first H&M and a newly refurbished David Jones department store. APPF Retail owns 50% of the asset.

Lakeside Joondalup

Western Australia

The A$330 million redevelopment created the largest shopping centre in Western Australia. This transformed the centre into a 99,600 square metre GLA Major-Regional asset. It included a 12,000sqm Myer, Perth’s first next generation Coles, an Aldi supermarket, Western Australia’s first H&M store, and 800 additional parking spaces. APPF Retail owns 50% of the asset, alongside a mandate client.

Craigieburn Central

Victoria

Located in one of the fastest growing suburbs in Melbourne, the Lendlease built 61,400 square metre shopping centre includes: three supermarkets - Coles, Woolworths and Aldi, two discount department stores - Big W and Target, a diverse range of specialty, service and convenience stores as well as over 2,600 car spaces. APPF Retail owns 75 per cent of the asset.

Responsible Property Investment

APPF Retail has a vision to be recognised as the 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 Retail has participated in the Global Real Estate Sustainability Benchmark (GRESB) since 2011.

The Fund was ranked second across 16 retail specific funds in Australia in the 2017 GRESB assessment. The Fund was also ranked 12th out of all 850 global participants.
   2011 2016  2017 2017 Change
GRESB Scores        
Overall Score  63% 88% 93% +5%
Management & Policy  74% 92% 99% +7%
Implementation & Measurement  59% 87% 91% +4%
GRESB Rankings        
All GRESB participants  41 of 339 22 of 759 12 of 850 10 places
Global, retail  12 of 67 6 of 129 6 of 138 No change
Oceania, retail  - 2 of 15 2 of 12 No change


Green Building Certification
Green building ratings for each asset as at 30 June 2017 are disclosed below:
NABERS ENERGY2
NABERS WATER
ASSET GREEN STAR DESIGN/AS-BUILT RATING1 CURRENT RATING 2018 TARGET CURRENT RATING 2018 TARGET
Cairns Central, QLD  - 4.5 4.5 3 4
Caneland Central, QLD  4 Star 4.5 4.5 3.5 4
CS Square, VIC  - 2 3.5 4 4
Craigieburn Central, VIC  4 Star 4.5 4 4.5 4.5
Erina Fair, NSW  - 4 4.5 3.5 4
Harbour Town Gold Coast, QLD  - 3 3.5 N/A3 4
Lakeside Joondalup, WA  4 Star 4.5 4 2.5 3
Macarthur Square, NSW  - 4 5 3.0 4
MidCity, NSW  - 3.5 3 N/A4 N/A
Sunshine Plaza, QLD  - 3.5 4 4.0 4
Westfield Carindale, QLD  4 Star 3.5 3.5 3.5 3
Westfield Marion, SA  - - 4 2.5 3
PORTFOLIO AVERAGE  - 4.35 4.5 3.55 4
 
1 New developments/centre redevelopments are certified using the Green Star rating system. Ratings only apply to the developed area portion of the asset.
2 Reported NABERS Energy performance and targets exclusive of GreenPower.
3 NABERS Water rating not available due to utility metering issue.
4 NABERS Water rating not possible due to shared services adjoining commercial office building.
5 NABERS Water rating not possible due to shared services with 420 George Street, Sydney.
6 Area and equity adjusted portfolio average performance, including prior ratings, but excluding unrated assets.