Lend Lease secures $2bn funding for Sydney Harbour towers in Australia

9 July 2012 (Last Updated July 9th, 2012 18:30)

Property and infrastructure group Lend Lease has secured A$2bn ($2.04bn) in funding for the development of two commercial towers at Barangaroo South in Australia.

Property and infrastructure group Lend Lease has secured A$2bn ($2.04bn) in funding for the development of two commercial towers at Barangaroo South in Australia.

The funding includes A$1bn ($1.01bn) from the Canada Pension Plan Investment Board and a combined A$500m ($509.5m) from the Lend Lease managed Australian Prime Property Fund Commercial and two existing APPF Commercial investors: First State Super and Telstra Super.

Australia-based Lend Lease will also invest up to $500m in the project, which involves the development of two office towers made up of 41 floors and 38 floors with a total floor area of 165,773m² including 6,840m² of retail space.

The third tower would be undertaken in the future when further deals for lease are executed.

Westpac Banking had agreed to lease about 70% of the commercial floor space in the first tower while KPMG and Lend Lease will together occupy 75% of the second tower.

Westpac and KPMG will move into the new buildings between mid-2015 and early 2016.

"Westpac and KPMG will move into the new buildings between mid-2015 and early 2016."

CPPIB senior vice-president of real estate investments Graeme Eadie said, "We will be able to gain a significant exposure in Sydney’s Central Business District through a premium-grade office development offering the tenants highly efficient and environmentally sensitive facilities."

Lend Lease is developing Barangaroo South for the New South Wales government by transforming 7.5ha of a former container port on the western rim of Sydney into a residential, shopping and business centre.

It is planning to create a new financial hub for the city after it started work on the $6bn ($6.12bn) redevelopment project in 2011.

The development will include a park along the Sydney harbour, offices, a ferry terminal and a hotel as well as outdoor areas to host public events.