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 716,200 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 108,000 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 89,200 square metres Premium grade office tower, with 41 levels. Tower Three is a Premium grade, 38-level office tower of 82,000 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.
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 31 December 2017 are disclosed below:

NABERS
ENERGY

NABERS
WATER

WASTE
RECYCLING
 
ASSET
GREEN STAR
DESIGN/
AS-BUILT RATING

GREEN STAR
PERFORMANCE
RATING

CURRENT
RATING
2021
TARGET
RATING1
CURRENT
RATING
2021
TARGET
RATING2
CURRENT
STATUS3
2021 TARGET 
1 Farrer Place – Gov. Macquarie Tower, Sydney -

2 Star 3 5 3.5 4 55% 65%
1 Farrer Place – Gov. Phillip Tower, Sydney - 2 Star 4 5 3.5 4 55% 65%
1 O'Connell Street, Sydney - 6 Star 4.5 5 3.5 4.5 49% 65%
 8 Spring Street, Sydney - 2 Star 2  4.5 1 4 88% N/A4
10 Spring Street, Sydney - - 4.5 N/A4  2.5 N/A4 N/A4 N/A4
 Darling Quarter, Sydney  6 Star 6 Star 5.5 5.5 4.5 5 60% 65%
 35 Tumbalong Boulevard, Sydney 6 Star5  - - 5.57 4.57  N/A4  65%
International Towers Sydney - Tower One 6 Star6  - - 5.57  - 5.57  75% 80%
International Towers Sydney - Tower Two 6 Star 2 Star 5 5.5 4.5 5.5 78% 80%
International Towers Sydney - Tower Three 6 Star6  - - 5.57 - 5.57  76% 80%
International House Sydney 6 Star5 - - 5.57 - 5.57  65% 80%
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 Star8 5 Star 4.5 5 4 4.5 48% 65%
800 Collins Street, Melbourne 5 Star 6 Star 5 5 5 5 40% 60%
One Melbourne Quarter, Melbourne  6 Star5  - - 5.57 - 4.57 - 65%
66 Eagle Street, Brisbane - 6 Star 5 5.5 4.5 4.5 64% 65%
BTC (East Tower), Brisbane - 5 Star EXEMPT 5 N/A 4.5 39% 50%
BTC (West Tower), Brisbane - 6 Star 5 5 N/A 4.5 39% 50%
60 Flinders Street, Adelaide 5 Star 5 Star 5 5 3 4.5 100% 65%
80 Flinders Street, Adelaide 5 Star 5 Star 4 5 3 4.5 47% 65%
Flinders Link Carpark, Adelaide  N/A N/A N/A N/A N/A N/A N/A N/A
Alan Woods Building, Canberra
- 6 Star 5 5 4.5 5 29% 65%
PORTFOLIO AVERAGE
 - 5 Star9  510  5.5  4.210  4.8 60%10,11  68%10,11
 
Minimum NABERS Energy commitment 4.5 Star per asset, Excluding GreenPower.
2 Minimum NABERS Water commitment 4 Star per asset.
3 Waste recycling performance as at 30 September 2017.
4 Performance and targets of items not available or currently in planning.
5 Green Star target rating.
6 Green Star Design rating only.
7 NABERS target ratings at post completion (after meeting required occupancy threshold levels and 12 months' continuous utility data).
8 Green Star Design rating only for North Building
Portfolio average weighted by building area and operational control of Fund. The portfolio average differs to the official Green Star Performance Portfolio certification of 6 Star as the certification excludes 8 Spring Street and International Towers Sydney - Tower Two, and assets not under Fund operational control.
10 Portfolio average weighted by building area and the percentage ownership of the asset, excluding unrated rating assets.
11Portfolio waste recycling performance and targets incorporating International Towers Sydney.