First State Super and Australian Prime Property Fund (APPF) Commercial have jointly pre-purchased a planned office building in Melbourne from the developer, Lendlease.

The transaction price was not disclosed, but IPE Real Assets understands the project is valued at around AUD550m (€345m).

First State Super and APPF Commercial will each hold 50% stake in the 25-storey tower known as Two Melbourne Quarter.

Michael Dwyer, First State Super’s CEO, said he was confident Two Melbourne Quarter would deliver its objective of long-term sustainable returns.

In a statement today, APPF Commercial’s fund manager, Scott Mosely, said APPF Commercial’s investment in Two Melbourne Quarter followed its recent over-subscribed equity raising.

APPF Commercial has AUD4.5bn of assets under management, and leveraged its off-market access to Lendlease’s office development and urban regeneration capability to acquire the asset.

The investment, said Mosely, positioned APPF Commercial to continue executing its strategy of investing in efficient, highly-sustainable, next-generation office buildings in precincts with superior amenity and connectivity.

A division of Lendlease group, Lendlease Development, has signed a development agreement with APPF Commercial and First State Super to build the tower.

Construction is due to begin this month.

Two Melbourne Quarter has already secured Energy Australia as anchor tenant.

Two Melbourne Quarter is the second of three commercial towers planned for the precinct, a AUD2.5bn urban regeneration project which will eventually have seven commercial and residential towers.

APPF acquired the first tower, One Melbourne Quarter, in 2016 for around AUD250m.

The tower is 90% leased and on schedule for completion later this year.