Lendlease Fund and First State Super acquire Two Melbourne Quarter
The Australian Prime Property Fund (APPF) Commercial, managed by Lendlease Investment Management, has joined one of Australia’s largest superannuation funds, First State Super, to jointly acquire Two Melbourne Quarter, a next-generation office building located in the Melbourne Quarter precinct.
A development agreement has been signed with Lendlease Development to build the tower.
Two Melbourne Quarter is the second of three commercial towers planned for the precinct. The first tower, One Melbourne Quarter, was acquired by APPF Commercial in 2016. It is 90 per cent leased and on schedule for completion later this year.
Two Melbourne Quarter has also secured EnergyAustralia as anchor tenant, the largest tenant to date for the precinct. With construction to commence this month, EnergyAustralia has agreed to lease approximately 22,000 sqm of the 50,000 sqm tower, taking up 10-and-a-half levels of the building’s high-rise floors.
With almost half the Woods Bagot-designed tower now leased, this leaves approximately 12 contiguous floors remaining. The building features flexible 2,000 sqm floor plates and is expected to house up to 4,500 new workers.
First State Super and APPF Commercial will each hold a 50 per cent interest in the 25- storey tower, which will target leading sustainability outcomes and ratings in energy and water consumption, waste management, and indoor environment quality, including a 6- Star Green Star Design & As Built rating and a 5.5 Star NABERS Energy rating.
Developed by Lendlease, the Melbourne Quarter precinct will seek to deliver a range of attractive workplace and wellbeing amenities including end-of-trip facilities, business amenities and childcare services.
APPF Commercial’s investment in Two Melbourne Quarter follows a recent equity raising.
The fund leveraged its off-market access to Lendlease’s leading office development and urban regeneration capability in acquiring the asset. APPF Commercial is the first Australian fund to be awarded a 6-Star Green Star portfolio performance rating and was also ranked number one in the 2017 Global Real Estate Sustainability Benchmark (GRESB) across all sectors globally.