Singapore’s sovereign wealth fund GIC announced its acquisition of a 25 percent stake in Sydney’s Lendlease International Towers Sydney Trust from Canada Pension Plan Investment Board and Lendlease Group, an Australia-based property developer.
Lendlease International Towers Sydney Trust (LLITST) owns assets in the Barangaroo Office Precinct in the Sydney Central Business District. GIC announced that the premium office properties owned in such locations have close proximity to Darling Harbour and various amenities.
The financial terms regarding GIC’s acquisition have not yet been disclosed.
Established in 2012, Lendlease International Sydney Towers Trust is valued at A$4.3 billion or$ 2.9 billion. The transaction between Lendlease and GIC is expected to be completed in the third quarter of 2019.
Lee Kok Sun, chief investment officer at GIC Real Estate said, “These high-quality assets, situated in the heart of Sydney’s CBD, are expected to generate attractive risk-adjusted returns in the long run.”
Mr Lee added that GIC is looking for long term investments and will therefore continue to invest in assets that will add value to the firm’s global portfolio.
Australia’s Lendlease reportedly has its eyes on the mid- September Singapore initial public offering for its upcoming global commercial real estate investment trust (Reit).
The real estate investment trust will comprise one property each in Singapore and Milan, which has a total area of 1.3 million square feet and is valued at S$ 1.4 billion. The trust further includes a shopping mall in Orchard Road.
GIC earlier announced its offloading of an undisclosed stake in Sydney Office skyscraper Chifley Tower, which is worth $1.2 billion, to Australian property group Charter Hall.