The National Pension Service of Korea (NPS) has bought an office tower in Australia from Lendlease, for a sum believed to be A$1.2bn (€758m).

Lendlease has also announced a joint venture with Japan’s Mitsubishi Estate, which has taken a 25% interest in its Residences Two tower, as part of its One Sydney Harbour project in Barangaroo.

NPS is buying the largest and the final commercial office building in Lendlease’s A$3bn Melbourne Quarter precinct. Lendlease Funds Management will manage the asset on behalf of the Korean institution.

Scott Kim, head of the real estate investment division at NPS, said the investment in the Melbourne tower was “the culmination of NPS endeavours in executing its build-to-core investment strategy to acquire premium-quality commercial assets with high sustainability features”.

He added that NPS looked forward to deepening its investment exposure to real estate in Australia.

NPS made a landmark deal in Australia in 2010 in the wake of the global financial crisis, buying the prime office block, Aurora Place, in Sydney for A$685m.

“NPS is a valued client of Lendlease Funds Management and we’re pleased to expand on our strong relationship by acting as their investment manager for Melbourne Quarter Tower,” said Kylie Rampa, CEO Property Australia, Lendlease.

Of its One Sydney Harbour, Residences Two project, Rampa said: “Our new joint venture with Mitsubishi Estate further cements Lendlease’s longstanding relationship with one of Japan’s largest property companies.”

The A$1.7bn residential tower is due to be completed by late 2024.

IPE Real Assets understands that Mitsubishi Estate is providing around $100m towards the development cost of the apartment block.

Mitsubishi Estate last year invested in the Residences One tower of the One Sydney Harbour complex for a similar amount of around A$100m for the development of that project. It also has a 30% stake in another Lendlease commercial project, Sydney Place.

Lendlease declined to comment on the value of today’s two transactions.

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