Lend Lease raises A$500m for Australian core fund

The Sydney-based developer and fund manager closes on A$500m for its Australian Prime Property Fund Retail. The vehicle will be used to “retire debt from recent acquisitions” according to a statement from the company.

Lend Lease, the Sydney-based real estate developer cum fund manager, has held a A$500 million (€347 million; $465 million) equity closing for the latest in its Australian Prime Property Fund (APPF) series, the unlisted APPF Retail fund.

In an announcement to the Australian Securities Exchange, the firm said the fund had become oversubscribed in a four week period.

The firm said: “APPF Retail, part of the APPF series of Funds, is Australia’s premier unlisted wholesale retail fund investing in a quality portfolio of mainly major-regional and super-regional core
properties across Australia.”

Lend Lease added that the fund would also be used to “retire debt” from recent purchases including a recent acquisition in Perth, western Australia.

The firm said the fund has a “strong forward development pipeline” of more than A$1 billion in real estate from which to invest over the next five years.

Higher up the risk curve, Lend Lease is also raising equity for another retail fund, the Lend Lease Real Estate Partners No 3 Fund, aimed at investing in assets embroiled in distressed situations. Lend Lease is targeting A$400 million in capital for that fund. The firm is also soon to start fundraising on a US$500 million China real estate fund. It would be the first in the country for Lend Lease’s Asia division, led by chief executive Ooi Eng Peng. Currently, the division manages a pair of Singapore focused vehicles.