Australian Prime Property Fund Commercial has bought a heritage building from the NSW State government in a A$93.5m (€64m) deal.

The Lendlease-managed fund bought the NSW Trustee & Guardian office building at 19 O’Connell Street in Sydney from NSW’s State Department of Planning and Environment.

The building was constructed in 1924 and has been sold with a conservation management plan in place to ensure its heritage values are protected and maintained into the future.

Lendlease managing director of investment management, Scott Mosely, said Lendlease had a global track record of city-changing urbanisation projects and would continue to invest in creating sustainable and activated buildings as part of the group’s next-generation precincts strategy.

The NSW department’s deputy secretary, property and development, Leon Walker, said: “Lendlease, which co-owns a number of surrounding buildings, is in a unique position to revitalise this building and the wider area over the medium term.

Walker said as part of the sale agreement for 19 O’Connell Street, NSW Trustee & Guardian could continue to occupy the building until June 2025.

Walker said proceeds from the freehold sale of the building would be reinvested into the purchase of new premises for NSW Trustee & Guardian that better suited its modern service delivery requirements to meet client needs, including improved accessibility.

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