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.
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
APPF Retail's property portfolio comprises interest in 11 predominantly Major-Regional shopping centres, with approximately 2,770 tenants.
The Fund was recognised as the number one global retail fund (listed and unlisted) across 136 retail fund entities globally in the 2019 GRESB assessment.
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:
The A$257 million redevelopment transformed the asset into south-west Sydney’s largest shopping centre. The development added approximately 16,000 square metres of retail space, including 45 new specialty stores, a new spacious al fresco dining precinct, the region’s first H&M, and a newly refurbished David Jones department store. APPF Retail owns 50% of the asset.
The A$258 million redevelopment created one of the largest shopping centres in Western Australia. This transformed the centre into a 99,900 sqm GLA Major-Regional asset. It included a 12,000 sqm 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.
Located in one of the fastest growing suburbs in Melbourne, the Lendlease built 64,000 sqm 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% 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.
In 2022, the fund ranked 7th in the Asia-Pacific region, and 20th out of 98 funds globally.
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 Certification
Green building certifications for each asset as at 31 December 2019 are disclosed below:
NABERS ENERGY NABERS WATER water recycling ASSET GREEN STAR DESIGN
2021 TARGET2 CURRENT
2021 TARGET CURRENT STATUS3 2021 TARGET Cairns Central, QLD - 4.5 5 3 4 31% 40% Caneland Central, QLD 4 Star 4.5 5 3 4 28% 30% Harbour Town Gold Coast, QLD - 3.5 3.5 N/A 4 37% 45% Sunshine Plaza, QLD - 4 4.5 3.5 4 43% 50% Westfield Carindale, QLD 4 Star 4 4 3.5 3 41% 40% Erina Fair, NSW - 4.5 5 3.5 4 48% 60% Macarthur Square, NSW - 4.5 5 N/A 4 27% 40% CS Square, VIC - 3 3 4 4 26% 40% Craigieburn Central, VIC 4 Star 4 5 5 5 35% 45% Lakeside Joondalup, WA 4 Star 4 5 2.5 3 45% 40% PORTFOLIO AVERAGE -
4.5 3.84 4 36%4 45% FOOTNOTES 1New development/ 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 excluding GreenPower. 3 Waste recycling performance as at 30 September 2019. 4Area and equity adjusted portfolio average performance.