Lend Lease (ASX: LLC) have created a new commercial wholesale open-ended property fund to acquire Tower 1 at the Barangaroo South project. The fund to be named Lend Lease One International Towers Sydney Trust and will invest a total of $2 billion dollars in the tower.
The investment will be made up $1.4billion of equity and $600million of raised debt financing. The $1.4billion dollars of equity will consist of a 37.5% investment from Qatar Investment Authority, a 25% investment from Lend Lease managed Australian Prime Property Fund Commercial and the remaining 37.5% will be from Lend Lease as they stay true to their strategy of investing alongside capital partners.
CEO and Managing Director, Steve McCann, said: “I am delighted to announce the creation of a second investment fund for Barangaroo South, bringing the total equity raised across the precinct to $3.4 billion.”
The tower has long had committed lease agreements with PWC and HSBC. More recently Marsh and McLennan Companies have committed to approximately 10,400sqm consisting of four and a half floors and Servcorp have committed to approximately 2,300sqm covering one floor. It is the second fund established by Lend Lease for the precinct. All three towers are currently under construction with tower 2 and 3 due for completion in FY16 and tower 1 in FY17. According to Lend Lease, the three tower Precinct is 66% pre-leased.
So far Lend Lease has raised $3.4 billion for the project and upon completion, the three towers will be known as The International Towers Sydney and will strive to be the new financial services hub of Sydney. According to reports on Bloomberg by 11 sell-side analysts, there has been a consensus on a Net Profit After Tax for Lend Lease FY15 of between $604 million - $635 million with an average of $619million.
Author: Imran Valibhoy
Jun 29, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.