Lendlease CEO Tony Lombardo is actively seeking institutional investors to counteract efforts by Hostplus to replace Lendlease with Mirvac as the manager of the $10 billion Australian Prime Property Fund (APPF). Lendlease is an international property and investments group with operations in Australia, Asia, Europe and the Americas. The company’s capabilities span the property value chain, from investment management to development and construction.
Sources indicate that Lendlease is in advanced discussions to raise $350 million from a variety of investors. These include local superannuation funds, Canadian pension funds, and institutional investors from Japan and Korea. The goal is to acquire Hostplus’ positions across the three APPF sub-funds.
The initial focus is on the $2 billion APPF industrial fund, where a recent unitholder vote to remove Lendlease as manager did not reach the required quorum. Following this, attention will shift to the APPF retail and office property funds. These funds hold significant assets, including prime properties such as One Farrer Place in Sydney.
The outcome of Lendlease’s fundraising efforts and the subsequent unitholder votes will determine the future management of the APPF and its valuable property portfolio.
