Lend Lease, the Sydney-based property developer-cum-fund manager, announced today that it has raised A$400 million (€276 million; $349 million) from existing domestic and offshore international investors for its Australian Property Fund Commercial (APPF) investment vehicle.
The firm said it had initially meant to raise half that amount, “however strong demand” the fund’s leadership determined it would raise the level of the raising. That meant it had to scale back over-subscriptions, it said, to accommodate the demand for places in the fund.
Kylie Rampa, managing director of Lend Lease’s Australian investment management business, said the capital would be used to retire debt, reduce it gearing position and to “position the fund to assess on-strategy opportunities.”
APPF holds 16 assets currently, including a cornerstone investment in the first two commercial office towers of the Barangaroo South development, known as International Towers Sydney two and three.
The fund previously held bigger positions in the two towers but earlier this year sold those to institutional investors APG Asset Management, the Dutch pension manager, and Abu Dhabi Investment Authority, the United Arab Emirates-based sovereign wealth fund.
Established in 1994, APPF is one of Lend Lease’s longest running property investment vehicles. The core-strategy, open-ended fund currently holds assets with a gross value of A$1.8 billion.
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