Australian Prime Property Fund (APPF) Commercial has entered into a joint venture with Lendlease to developed a A$1.2bn (€744m) mixed-use project in North Sydney.

The fund has agreed to acquire a 25% interest in the Victoria Cross Over-Station Development Tower, a 40-storey office building to be constructed above North Sydney’s new Victoria Cross station.

Micah Schulz, fund manager APPF Commercial, said the investment was aligned with APPF Commercial’s focus on owning next-generation, sustainable assets in connected precincts with great amenity.

North Sydney, Sydney’s alternate central business district, is undergoing rapid transformation, with a string of new projects and transport links. Victoria Cross will include about 58,000sqm of office and retail.

Matt Mears, Lendlease’s managing director of development, said the project would be designed to create a new “civic heart” for North Sydney, and would feature leading sustainability practices.