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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 21 predominantly Premium and A Grade assets, covering a total of 690,2000 square metres of net lettable area (NLA).

In 2019, the Fund was ranked first globally of all 964 respondents in the 2019 GRESB Assessment, having also achieved this ranking in 2014, 2015, 2017 and 2018. 

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 Image
Sydney

Darling Square

A next-generation commercial building leased to CBA, Darling Square comprises over 27,800 square metres of NLA. 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 Image
Sydney

International Towers Sydney, Tower One

Tower One is the tallest of the three office towers in the precinct and comprises 107,800 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 Image
Sydney

International Towers Sydney, Towers Two and Three

Tower Two is an 88,200 square metres Premium grade office tower, with 41 levels. Tower Three is a Premium grade, 38-level office tower of 83,000 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.

  • APPF Commercial has participated in the Global Real Estate Sustainability Assessment since 2011.

    Lendlease Australia’s office funds have topped the world’s most sustainable ratings in the 2022 GRESB Real Estate Assessment.

    First globally: Lendlease One International Towers Sydney Trust at Barangaroo South precinct, with a score of 98.

    Second globally: Australian Prime Property Fund Commercial

    Fourth globally: Lendlease International Towers Sydney Trust

    In Australia, Lendlease’s national office portfolio remains an industry leader in sustainability, certified carbon neutral five years ahead of Lendlease’s target for funds to be net zero carbon by 2025 for Scopes 1 and 2.

    Overall, a Lendlease office fund has been recognised as the world’s most sustainable office real estate fund, claiming first place for eight of the last nine years.

    This year, all Lendlease Australia funds placed in the top 10 for their asset category, and five funds achieved a 5 Star GRESB rating. Globally, Lendlease continues to demonstrate leadership in sustainability, reflected in 21 accolades across 17 funds in 2022.

  • Green building ratings for each asset as at 31 December 2019 are disclosed below:

     

     

     

    NABERS
    ENERGY1

    NABERS
    WATER2

    WASTE
    RECYCLING
     

    ASSET

    GREEN STAR
    DESIGN/
    AS-BUILT RATING

    GREEN STAR
    PERFORMANCE
    RATING

    CURRENT
    RATING

    2021
    TARGET
    RATING

    CURRENT
    RATING

    2021
    TARGET
    RATING

    CURRENT
    STATUS3

    2021 TARGET 

    1 Farrer Place – Gov. Macquarie Tower, Sydney

    -

     

    4 Star

    4.5

    5

    3.5

    4

    39%

    65%

    1 Farrer Place – Gov. Phillip Tower, Sydney

    -

    4 Star

    4.5

    5

    3.5

    4

    39%

    65%

    1 O'Connell Street, Sydney

    -

    6 Star

    5

    5

    4

    4.5

    41%

    65%

    23 O'Connell Street, Sydney  - Expected from rating N/A Expected from rating N/A N/A N/A

     8 Spring Street, Sydney

    -

    3 Star

    2

     4.5

    2.5

    4

    15%

    65%

    10 Spring Street, Sydney

    -

    3 Star

    3.5

    4.5

    3

    4

    18%

    65%

     16 Spring Street, Sydney

     -

    3 Star

    4

    4.5

    2

    4

    23%

    65%

    Darling Quarter, Sydney

     6 Star

    6 Star

    5.5

    5.5

    4.5

    5

    55%

    65%

    Darling Square, Sydney

     6 Star

     5 Star

    5

    5.5

    3

    4.5

     35%

     65%

    International Towers Sydney - Tower One

    6 Star

    6 Star 5 5.5 4.5 5 86% 80%

    International Towers Sydney - Tower Two

    6 Star

    6 Star

    5

    5.5

    4

    5

    86%

    80%

    International Towers Sydney - Tower Three

    6 Star

     6 Star

    5

    5.5

    4.5

    5

    92%

    80%

    International House Sydney

    6 Star

    6 Star

    5.5

    5.5

    3.5

    5

    84%

    80%

    Daramu House4

    6 Star (Design Rating)

    N/A N/A

    5.55

    N/A

    55

    N/A

    N/A

    Towns Place Car Park, Sydney

    N/A

    N/A

    N/A

     N/A

    N/A

    N/A

    N/A

    N/A

    485 La Trobe Street, Melbourne

    4 Star (North Tower)

     5 Star

    4.5

    5

    4

    4.5

    28%

    65%

    One Melbourne Quarter, Melbourne4

    6 Star

     N/A

    N/A

    5.55

    N/A

    4.55

    41% 65%

    Two Melbourne Quarter, Melbourne4

    6 Star (Design Rating)

    N/A

    N/A

    5.55

     N/A

    4.55

    N/A

     N/A

    66 Eagle Street, Brisbane

    -

    6 Star

    4.5

    5.5

    4

    4.5

    58%

    65%

    Alan Woods Building, Canberra

    -

    6 Star

    4.5

    5

    4

    5

    13%

    65%

    PORTFOLIO AVERAGE

     -

    6 Star6

    5.16

     5.5

     4.36

     4.9

    53%7

     71%7

     

     

    Minimum NABERS Energy commitment 5 Star per asset, excluding GreenPower (23 O’Connell Street Sydney is excepted as strata offices cannot be rated under the NABERS program).

     

    2Minimum NABERS Water commitment 4 Star per asset (23 O’Connell Street, Sydney is excepted as strata offices cannot be rated under the NABERS program).

     

    3Waste recycling performance as at 30 September 2019.

     

    4Assets acquired post RPI Strategy targets. Asset-specific waste recycling targets to be determined and disclosed during occupation.

     

    5NABERS target ratings at post completion (after meeting required occupancy threshold levels and 12 months continuous utility data).

     

    6Portfolio averages weighted by building area and the percentage ownership of the asset, excluding unrated assets and 1 Farrer Place and Towns Place Car Park (for which LLFM does not have operational control).

     

    7Portfolio waste recycling performance and targets excluding assets with less than 12 months operational data and where LLFM does not have operational control.

     

Contact

 
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Claire Van Schaik

Head of Capital Raising and Investor Relations, Investment Management

Other managed funds

Australian Prime Property Fund Retail
Australian Prime Property Fund Industrial
Lendlease Sub-Regional Retail Fund
Lendlease International Towers Sydney Trust
Lendlease One International Towers Sydney Trust