One of Asia’s largest institutional investors is taking a 25% stake in Lendlease’s part of Barangaroo South precinct, a slice of Sydney’s biggest development project.
The deal for a stake in Lend Lease One International Towers Sydney Trust is conditional on Foreign Investment Review Board approval. The name of the buyer hasn’t been released.
Lendlease shares were up almost 3.6% to $14.14.
The fund was setup in June this to invest in the precinct and own the third and largest commercial tower known as Tower One.
Following the completion of the sale of a 25% interest, Lendlease’s equity commitment will reduce to $175 million (12.5%) from $525 million (37.5%).
Other investors include the Qatar Investment Authority and the Lendlease-managed Australian Prime Property Fund Commercial.
Major tenants of Tower One include PwC, HSBC, Marsh & McLennan Companies and Servcorp.
Lendlease CEO Steve McCann says interest in the Barangaroo South precinct has grown substantially with total equity raised across the precinct of about $3.4 billion.
Towers Three and One are expected to complete in 2016 and 2017. Tower Two, home to anchor tenant Westpac, opened this year.