Lend Lease fund to sell $80m green Docklands office
Lend Lease’s unlisted Australian Prime Property Fund Commercial has appointed agents to sell one of its highest-profile green buildings in Melbourne, The Gauge, seeking a price of about $80 million.
This follows a recent sale of International House Sydney, Australia’s first office building made from timber, by Lend Lease to one of its own managed funds — Lend Lease International Towers Sydney Trust.
The Gauge, at 825 Bourke St, Docklands, is a seven-storey office building comprising ground floor retail and six levels of A-grade office space.
Built by Lend Lease in 2008, the 10,164sqm asset forms part of the company’s Victoria Harbour project in Melbourne’s CBD.
The building was the first private sector commercial development in Australia to win a six-star green star rating by the Green Building Council of Australia.
Josh McHutchison, managing director of Lend Lease’s Australian Investment Management business, says APPF Commercial expects to capitalise on the current strong investment market to sell its smallest commercial asset.
“The sale of the asset aligns with the fund’s strategy to divest its smaller assets to focus on larger scale commercial buildings that offer sustainable and flexible workplace environments,” McHutchison says.
Colliers International’s Leigh Melbourne and Nick Rathgeber have been appointed to market the building, with an international expression of interest campaign starting next month.
Lend Lease recently sold another green building, International House in Sydney, to LLITST, a $2.5 billion trust owned by Canadian Pension Plan Investment Board, APPF Commercial, Lend Lease and APG.
International House Sydney, due for completion in 2017, will be made from engineered wood with a lower carbon footprint. The building will offer 6850sqm of net lettable area across six levels. Industry sources have suggested a $90 million price.
This article originally appeared on www.theaustralian.com.au/property.