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Lendlease Fund Snaps Up Spring Street Tower

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Sydney’s heated office market shows no signs of slowing in 2018 with another major building asset snapped up for more than $50 million.

Lendlease’s Australian Prime Property Fund Commercial has acquired a 12-storey tower in Sydney’s Spring Street.

The 16 Spring Street property was put on the market late last year by its private Asian owner. It has 3172 square metres of office space on a 460-square metre lot.

“The acquisition is in line with the fund’s strategy of focusing on investing in next-generation, sustainable precincts in transport-rich locations. This is a very attractive area of the city and is well positioned to play a role in Sydney’s evolution as a leading global gateway city,” a Lendlease spokesperson said.

[Related reading: Investors Double Money on Elizabeth Street Tower]

The building sits next to 10 Spring Street which was acquired by the Lendlease fund in a transaction last year worth $270 million. APPF Commerical bought the building from Centuria.

Inc RE’s Simon Fenn said at the time: “10 Spring Street attracted aggressive local and offshore capital looking to secure an asset that has the potential to be part of a rare super site in the future whilst also offering the immediate opportunity to capitalise on the strength of Sydney’s B grade leasing market.”

[Related reading: Blackstone Sells Half Share of Westpac Place for $800m]

The APPF Commercial and the Abu Dhabi Investment Authority also purchased the neighbouring 8 Spring Street property from funds house Heathley for about $69m early in 2017.

The Spring Street acquisitions could form the basis of another supersite for Lendlease as its Barangaroo South precinct draws to completion.

A number of deals have seen Sydney office buildings changing hands at record rates. Late in 2017 businessman and Sydney Roosters chairman Nick Politis and property investor Matthew Lepouris bought Rowlandson House on Castlereagh Street for about $59 million.

Around the same time Asian-backed investors purchased 13-level University Centre at 210 Clarence Street for nearly $44 million.

Five-storey fully-leased and restored heritage building Concierge House at 332 Kent Street sold to an offshore group for $25m.

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Article originally posted at: https://theurbandeveloper.com/articles/lendlease-fund-snaps-up-spring-street-tower