Singapore’s GIC picks up 25.1% stake in Lendlease’s Sydney office property trust

Photo: Reuters

Singapore’s sovereign wealth fund will acquire a 25.1 per cent stake in Lendlease International Towers Sydney Trust (LLITST) from Canada Pension Plan Investment Board (CPPIB) and Australia-based property developer Lendlease, it said in a statement on Monday.

Financial terms of the deal were not disclosed.

LLITST holds assets located in the Barangaroo Office Precinct in the Sydney central business district (CBD)  – close to Darling Harbour.

“These high-quality assets, situated in the heart of Sydney’s CBD, are expected to generate attractive risk-adjusted returns in the long run. As a long-term investor, we will continue to seek good investment opportunities that will add value to our global portfolio,” said GIC Real Estate chief investment officer Lee Kok Sun.

According to Lendlease’ website, LLITST was established in 2012 and is valued at A$4.3 billion ($2.9 billion). It holds a 100 per cent interest in International Towers Sydney, International House Sydney and the Towns Place Car Park.

The deal is subject to regulatory approval and is expected to close in the third quarter of this year.

A report by The Business Times said ASX-listed Lendlease Group is looking to list its upcoming global commercial real estate investment trust on the Singapore Stock Exchange in September, which will comprise one property each in Singapore and Milan. The listing will be worth at least S$1 billion ($720 million) in market capitalisation.

Also, in the land down under, GIC has partnered with Dexus last November, an Australian real estate investment trust to establish a A$2-billion ($1.45 billion) unlisted trust to invest in local logistics properties. The new unlisted vehicle is open-ended with an indefinite term and an active acquisition and development mandate.

Earlier this month, GIC announced that it has offloaded an undisclosed stake in the A$1.8-billion ($1.2 billion) Sydney office skyscraper Chifley Tower to Australian property group Charter Hall. The sovereign wealth fund was reportedly looking to offload a 50 per cent stake in the property for around A$900 million ($604 million), which it acquired for A$710 million ($512 million) in 2005.