Australian Prime Property Fund Commercial (APPF Commercial) has acquired Lendlease’s 20% stake in the Sydney Place development project at Circular Quay.

APPF Commercial, Lendlease’s flagship wholesale fund, will co-own the asset with China’s Ping An Real Estate and Japan’s Mitsubishi Estate Asia, through a fund set up to hold the A$2.2bn (€1.4bn) property which is expected to be completed later this year.

In 2016, the two Asian investors entered into a joint venture with Lendlease, which is developing the Sydney Place precinct. The Chinese insurer has a 50% stake and Mitsubishi Estate Asia holds a 30% interest.

Lendlease retained a 20% interest in the project, which features Sydney’s tallest commercial skyscraper, the 55-storey Salesforce Tower. The developer has now sold its interest to its APPF Commercial fund.

Micah Schulz, head of office, Lendlease Investment Management said: “Sydney Place brings another world-class precinct investment into our growing office portfolio.

“It is a true example of a next-generation, connected precinct that will benefit both the business community and public at large,” he said.

Established in 1994, the unlisted APPF Commercial owns 21 assets worth over A$6.2bn, including the International Towers One, Two and Three, in Lendlease’s urban regeneration scheme, Barangaroo.

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