First State Super revealed as Darling Harbour Live backer
The $55 billion First State Super has emerged as the backer of a new $400 million Lend Lease infrastructure fund that will hold stakes in Sydney’s Darling Harbour Live project, which is anchored by the new convention centre and two hospitals.
Lend Lease revealed it had established the unlisted vehicle, known as the Lend Lease Public Infrastructure Investment Company, which will hold equity positions in social infrastructure assets including Sunshine Coast University Hospital, New Bendigo Hospital and Darling Harbour Live.
First State Super holds a 90% stake in the fund, with Lend Lease holding the remaining 10%.
The move is part of the company’s model of developing and then managing funds invested in prime commercial and mixed-use developments for some of the world’s wealthiest institutions.
We believe investing in social infrastructure
“Lend Lease has developed a strong track record in financing and developing quality infrastructure assets. Selling our equity interests, at or near the operational phase, is a consistent feature of our strategy,” Lend Lease chief executive Steve McCann says.
After the deal, Lend Lease expects to deliver a profit after tax of between $680 million and $710 million this financial year.
First State Super head of income and real assets Damien Webb says that the investment is a continuation of the fund’s approach that has also seen it take an equity stake in Sydney’s Light Rail project.
“We believe investing in social infrastructure, such as this, provides us with a good return for our members and it also helps contribute to a better world for our members and for them to retire into,” he says.
Lend Lease has developed a strong track record in financing and developing quality infrastructure assets
First State Super is the majority equity participant in the consortium that successfully bid for the CBD and South East Sydney Light Rail project. The consortium also took responsibility for the Inner West Light Rail line that terminates at Central Station.
First State Super teamed up last year with Lend Lease’s Australian Prime Property Fund Commercial to buy a yet-to-be completed office building in the Darling Square development. The super fund also joined Telstra Super to invest in Lend Lease’s Barangaroo South precinct.
– with Ben Wilmot
This article originally appeared on www.theaustralian.com.au/property.
