Lendlease Acquires 20% Stake In Sydney Place Project
AUSTRALIA – The flagship office fund of Lendlease has agreed to buy a stake in the A$2.2 billion Sydney Place project, which will house the tallest office tower in the city, reported The Australian Financial Review on Tuesday morning (28 June, SGT).
Notably, the ASX-listed property player is building the Sydney Place precinct via a partnership with Mitsubishi Estate Asia and Ping An Real Estate. The latest deal also taps Lendlease’s third major area of business, which is real estate investment management.
The 20 percent interest owned by Lendlease’s Australian Prime Property Fund Commercial will be held alongside the stakes of its co-investors in a fund that is managed by the property player.
The centrepiece of the mega development is a 55-storey office building at 180 George Street that will be called Salesforce Tower, which is slated to open later this year and is over 70 percent pre-leased.
Cloud-based software company Salesforce obtained naming rights to the office building, which overlooks Circular Quay, after agreeing to be its anchor tenant in 2019. Other tenants include coworking space provider The Executive Centre, property consultancy Jones Lang LaSalle (JLL), investment management firm Wellington Management, and Greenhouse, a tech-focused growth hub by Investible.
Popular social media platform TikTok is also in talks to lease office space in the skyscraper designed by Foster + Partners.
“Sydney Place brings another world-class precinct investment into our growing office portfolio,” said Micah Schulz, Head of office for Lendlease Investment Management.
“It will offer great public amenity along with excellent transport connectivity and strong sustainability credentials.”
The Sydney Place deal is the latest in a series of major global transactions for Lendlease. Earlier this month, it secured a A$3 billion office project in Singapore’s central business district (CBD) after partnering with Singtel to redevelop the headquarters of the telecom giant.
