Archive | Lend Lease

Lendlease becomes Barangaroo tenant and promotes multi-storey timber office construction

Lendlease Corp moved into its new headquarters in the 168-tall tower 3 of Barangaroo South’s International Towers on Friday, 11 years after being shortlisted in the design competition for the new Sydney financial district between the harbour bridge & Darling Harbour and 6½ years after winning the state government contract to develop stage 1.

2000 of the construction company’s employees are moving from 5 locations into 24,500m² on levels 8-19 of Tower 3’s 39 floors.

Work practices

Chief executive & managing director Steve McCann said the new headquarters showcased Lendlease’s capability – it’s owned by a Lendlease-managed fund, was built by the company, is in a precinct transformed by its urban regeneration business and is in a tenancy that demonstrated the group’s understanding of vibrant, productive workspaces for employees & customers.

Under the team-based working model, instead of belonging to an individual desk, employees belong to a team neighbourhood of 15-20 people, and each neighbourhood has access to a range of spaces. Spaces include a team table, the anchor point for each team; working walls for visual communication; enclosed spaces known as pods; breakaways, for less formal & ad hoc collaboration; and focus points, for tasks requiring concentration.

Levels 13 & 14 feature a 6m high breathing green wall containing over 5000 plants. Mr McCann said the active, modular green wall system was scientifically proven to accelerate the removal of air pollutants, such as carbon dioxide & volatile organic compounds. “In addition, it cools the surrounding air temperature, resulting in energy efficiency and health & wellbeing gains.”

Tower 3 is one of the largest highrise office buildings to have received a 6 star green star office design v3 rating from the Green Building Council of Australia.

As well as noting that staff will have access to over 1000 bike racks, 40% of their work stations are stand-up desks. Lendlease made some observations about work practices in its business, and said the research that informed its new workplace strategy & design revealed:

  • 41% of its people occupy a work point seat at any time
  • 36% are away, on site or working away from the office
  • 23% will be around & about, mainly in meetings or refreshing
  • 54% of their work is process-type, interruptible & routine
  • 53% of their work is done collaborating with others, and
  • 46% of their work requires deeper thinking, focus & to be ‘in the zone’.

Barangaroo South project progress

The whole of Barangaroo South adds about 270,000m² of premium office space to Sydney – similar in scale to the Marina Bay financial centre in Singapore & Canary Wharf in London. 3 towers named International Towers Sydney have been built, 2 now occupied:

Tower 1, PwC, HSBC, Marsh & McLennan, Servcorp
Tower 2, Westpac, Swiss Re, Gilbert + Tobin
Tower 3, KPMG, Lendlease

  • $A4 billion of funding secured for the whole precinct
  • Unitholders in the Towers 2 & 3 owner, Lend Lease International Towers Sydney Trust, are the Canadian Pension Plan Investment Board (50%), Australian Prime Property Fund Commercial (25%), Lend Lease Trust (15%) & APG (10%)
  • Tower 2 completed & opened 1 July 2015. Tower 3 opening mid-2016 and Tower 1 to open end 2016
  • Barangaroo Reserve (6 ha of parkland) opened by NSW Government in mid-2015.
  • 7000 office workers have moved into Tower 2 and 25 retailers are trading in the precinct; on completion there will be over 80 retail outlets
  • $A40 million public art fund ($A20 million for Barangaroo South) established, with first indigenous artwork unveiled late 2015
  • Transport for NSW’s construction of Wynyard Walk & Barangaroo Ferry hub is ongoing
  • Planning assessments in progress for concept plan amendment (modification 8) & Crown Hotel
  • Application to come for Renzo Piano-designed 1 Sydney Harbour towers.

Trust also buys 6-storey laminated timber office building

An impression of the 6-storey Barangaroo timber-structure office building.

An impression of the 6-storey Barangaroo timber-structure office building.

As its own new headquarters in Barangaroo South neared completion, Lendlease Corp announced on 24 June that the owner of 2 of the 3 office towers in the precinct, Lend Lease International Towers Sydney Trust, would also acquire an innovative 6-storey engineered timber office building.

The building, designed by Jonathan Evans & Alec Tzannes of Tzannes Associates, is aimed at setting a new benchmark in the use of sustainable building materials. It’s due for completion next year.

It will have 5 office floors above ground-floor retail, net lettable area of 6850m², and will be built at the Sussex St junction between the old central business district and the new Barangaroo.

The building will be constructed from cross-laminated timber (CLT) & glue-laminated timber (glulam). CLT has a lower carbon footprint than other building materials, the production process produces zero waste, and timbers are sourced from certified sustainably managed forests. Much of the building can be prefabricated and assembled on site.

Mr Tzannes said: “Looking from the bridges leading to Barangaroo, through the clean glass skin, the multi-storey timber structure forms the character of the architecture, that from inside creates an interior environment reminiscent of the spaces often found in Sydney’s historic timber or cast iron & brick buildings from the era when warehouse buildings were crucial to Australia’s maritime economy.”

International House Sydney is Lendlease’s third CLT building in Australia, joining 2 in Melbourne – Forté Apartments and the Library at The Dock. The library is Australia’s first 6-star green star public building and is made from engineered timber & reclaimed hardwood.

Links: Lendlease
Barangaroo
Barangaroo South
International House Sydney

Earlier stories:
21 December 2009: Lend Lease wins Barangaroo stage 1
25 March 2006: 11ha of park in Sydney’s East Darling redevelopment
7 August 2005: East Darling Harbour design competition goes to round 2

Attribution: Company releases.

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World property Sat5 Mar16 – Melbourne Quarter approval, big development outside Brisbane

Lendlease’s Melbourne Quarter gets stage 1 approval
$A6 billion development campaign opens for aspiring Brisbane cbd competitor

Lendlease’s Melbourne Quarter gets stage 1 approval

Victorian planning minister Richard Wynne approved the first stage of Lendlease Group’s $A1.9 billion Melbourne Quarter development on Thursday.

Mr Wynne said the precinct on Batman Hill, between Collins & Flinders Sts and across the road from Southern Cross station, would improve the link between the Hoddle Grid (the rectangle marked out 180 years ago as Melbourne’s centre) & Docklands. The approval includes a 2000m² elevated park to be built over part of Wurundjeri Way & Collins St, called Melbourne Skypark & expected to be complete in 2018.

A 30,000m² 19-level commercial tower has also been approved for Aurora Lane & Collins St. It will have 177 car spaces & 210 bike spaces.

All up, the development will have 7 commercial & residential buildings, 110,000m² of office space, 4500m² retail net lettable area, and 3 towers on Flinders St will contain 1700 apartments.

The managing director of Lendlease’s urban regeneration business in Australia, Jonathan Emery, said: “With its apartment neighbourhood located next to a thriving commercial district, Melbourne Quarter offers the opportunity to live next to work, which is increasingly appealing for young professional owner-occupiers & investors with a keen eye on the leasing market.

“Lendlease’s urban regeneration footprint across the globe has revealed that an increasing number of city dwellers are aspiring to live close to work, and where they have access to all a city has to offer – restaurants, shopping, public transport, workplaces & education. Melbourne Quarter delivers on this need.”

On completion, it is expected to be home to 10,000 workers & 3000 residents.

Links: Melbourne Quarter
Victorian Government, 3 March 2016: Elevated park & office tower approved for Docklands

$A6 billion development campaign opens for aspiring Brisbane cbd competitor

The developer of a city on the outskirts of Brisbane, which it wants to become a competitor of Brisbane’s central business district, launched an expressions of interest campaign on Monday for a medium-density apartment project with an estimated $A6 billion end value.

Springfield Land Corp chair Maha Sinnathamby, who bought the original 2860ha of Greater Springfield 30km south-west of Brisbane with business partner Bob Sharpless for $A7.2 million in 1990, has grown it to a population of 32,000 and is aiming for 86,000 by 2030.

He’s seeking development & capital partners to deliver the 10,000-apartment City Centre North project, and ancillary commercial & retail space, next to the rail station & transit hub in the heart of Greater Springfield over the next 15 years. UBS AG’s Australian branch, as financial advisor, is running the expressions campaign.

Springfield is a suburb of Ipswich, a city of 180,000 people, but has been changing fast. It’s had $A12 billion invested in it, and about $A600 million/year is being spent on construction. The University of Southern Queensland has just completed an $A45 million expansion of its campus, the Orion Springfield Central shopping centre has undergone an $A154 million expansion, and new office buildings include GE’s $A72 million Queensland headquarters, opened last year.

Mr Sinnathamby, 76, studied engineering in Sydney in the 1960s, and emigrated to Australia from Malaysia in the 1970s after working at the World Bank & Asian Development Bank. He said this week: “The City Centre North apartment project represents an exciting next step in the evolution of Greater Springfield, as an alternative to the Brisbane cbd, providing greater housing & work choices to the diverse mix of Greater Springfield residents across age cohorts & market segments. It also represents an opportunity for another visionary group to join existing major stakeholders who have been active in the development and commercialisation of Greater Springfield.”

Link: Greater Springfield

Image: Lendlease’s Melbourne Quarter (left foreground).

Attribution: Lendlease, Victorian Government, Greater Springfield

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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Blackstone buys Lendlease’s NZ retirement villages

Blackstone Group LP said overnight that funds it manages had entered into a definitive agreement to acquire Lendlease Group’s portfolio of 5 retirement villages in New Zealand.

Blackstone didn’t disclose financial terms of the transaction, which it expected to close in several months following relevant regulatory approvals.

4 of the villages are in Auckland – the Knightsbridge, Mayfair (pictured) & Parklane on the North Shore and Peninsula Club at Whangaparaoa – and the other, Ocean Shores, is at Mt Maunganui.

ASX-listed Lendlease is an international property & infrastructure developer. It also owns 73 retirement villages around Australia.

Blackstone manages $US330 billion of assets. Its Tactical Opportunities business employs an opportunistic investment strategy across asset classes, industries & geographies: “The strategy seeks to capitalise on time-sensitive or non-traditional investment opportunities that are differentiated & difficult to source, analyse or execute.”

Attribution: Company release.

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World property W6Jan16 – Barangaroo, Melbourne Quarter, UK fast-track housing

Lend Lease gets Barangaroo investor, first Melbourne Quarter tenant
UK government launches fast-track housing programme

Lend Lease gets Barangaroo investor, first Melbourne Quarter tenant

Lend Lease Group announced major deals in the week before Christmas on its Barangaroo South development in Sydney and Melbourne Quarter in the heart of Melbourne.

In Sydney, it’s sold a 25% stake in the Barangaroo South Tower 1 to an unnamed Asian institutional investor, conditional on Foreign Investment Review Board approval. This will reduce Lend Lease’s equity commitment from $A525 million (37.5%) to $A175 million (12.5%).

The developer set up the Lend Lease 1 International Towers Sydney Trust last June to own the building, expected to be completed by July 2017 with PwC, HSBC, Marsh & McLennan and Servcorp as major tenants. Other investors include the Qatar Investment Authority and the Lend Lease-managed Australian Prime Property Fund Commercial.

Tower 2 has already opened and Tower 3 is due for completion by mid-2016.

In December, Lend Lease signed up global design & engineering firm Arup as the first tenant in its $A1.9 billion Melbourne Quarter precinct between Collins & Flinders Sts and across the road from Southern Cross station.

Arup will move to the 25,000m² 6-star green star One Melbourne Quarter, the first tower of 7 commercial & residential buildings planned for a precinct Lend Lease is calling Melbourne’s “new economic heart”.

Link: Lend Lease

UK government launches fast-track housing programme

British Prime Minister David Cameron said on Monday the government would directly commission small & up-&-coming companies to build thousands of affordable homes on public land in a fast-track programme.

He said the direct commissioning approach hadn’t been used on this scale since Margaret Thatcher and Michael Heseltine started the London Docklands regeneration in 1981.

This time, the government will set up a £1.2 billion fund to build 30,000 “starter homes” on underused brownfield land in the next 5 years.

Mr Cameron said developing on public land “will lead to quality homes built at a faster rate, with smaller building firms – currently unable to take on big projects – able to get building on government sites where planning permission is already in place.

“The first wave of up to 13,000 will start on 4 sites outside of London in 2016 – up to 40% of which will be affordable ‘starter’ homes. This approach will also be used in at the Old Oak Common site in north-west London.”

The Conservative government has committed to delivering 200,000 starter homes over the next 5 years. The brownfields starter home fund will fast-track construction of at least 30,000 new starter homes and up to 30,000 market homes on 500 new sites by 2020.

Link: Government will directly build affordable homes

Attribution: Lend Lease, UK Government.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property W1Jul15 – Qataris fund Sydney tower, Brisbane congestion, Mirvac buys for apartments & houses

Qatar fund joins Lend Lease for $A2 billion Barangaroo tower
Lend Lease wins tender for Brisbane motorway widening
Mirvac buys Sydney apartments site & 481ha for Brisbane homes

Qatar fund joins Lend Lease for $A2 billion Barangaroo tower

Lend Lease Corp Ltd has launched a wholesale open-ended property fund to invest in the $A2 billion commercial Tower 1 at Barangaroo South, in the 22ha redevelopment zone between Darling Harbour and the Sydney Harbour Bridge. The former container port is being transformed to become a global financial hub, with a headland park.

Lend Lease One International Towers Sydney Trust is the second fund established to invest in the precinct and takes total equity raised to $A3.4 billion. Construction of Tower 1, the third & largest commercial tower, began in April 2014.

Barangaroo, beside the old Sydney cbd.

Barangaroo, beside the old Sydney cbd.

The new fund will acquire 100% of Tower 1 with $A1.4 billion of equity commitments from capital partners & $A600 million of debt financing. The Qatar Investment Authority has committed to a 37.5% investment and the Lend Lease-managed Australian Prime Property Fund Commercial has committed to a 25% investment. Consistent with its strategy of investing alongside capital partners, Lend Lease will hold the remaining 37.5% as a co-investor.

Lend Lease recently signed leasing arrangements with Marsh & McLennan Companies for 10,400m² (4½ floors) and Servcorp for 2300m² (one floor). PricewaterhouseCoopers & HSBC were already signed up.

Lend Lease group chief executive & managing director Steve McCann said pre-leasing of the 3 towers had reached 66%. All 3 are under construction. Completion of Towers 2 & 3 is expected in the 2016 financial year (which starts today) and Tower 1 in the 2017 financial year.

Tower 1, 48% leased, will have 101,000m² of commercial net lettable area & 6000m² retail, Tower 2 88,000m² & 1000m² (79% leased) & Tower 3 78,000m² & 4500m² (76% leased).

The Barangaroo South precinct will also host a Crown Resorts Ltd integrated resort, agreed a month ago after Lend Lease lodged a modification to its revised concept plan

Links: Barangaroo South
Lend Lease

Lend Lease wins tender for Brisbane motorway widening

Lend Lease Corp’s Lend Lease Engineering Pty Ltd was named last Friday as the successful tenderer for design & construction of the $A1.162 billion Gateway upgrade north project in Brisbane.

Queensland’s Assistant Minister for Infrastructure & Regional Development, Jamie Briggs, and Minister for Main Roads, Road Safety & Ports, Mark Bailey, said the project would fix one of the state’s most congested & important motorways which formed a vital link between key freight hubs, such as the Port of Brisbane & Brisbane Airport.

It will widen an 11km kilometre section of the motorway from 4 to 6 lanes and widen the Deagon Deviation to 2 lanes in each direction.

The Federal Government has committed up to $A929.58 million and the Queensland Government $A232.42 million to the project, scheduled for completion in 2018.

Link: Gateway project

Mirvac buys Sydney apartments site & 481ha for Brisbane homes

Australian masterplanned residential developer Mirvac Group has signed up for 2 new sites in the last 3 weeks, one for 500 apartments & 7500m² of commercial space at St Leonards, 5km from the Sydney cbd. The other is a 481ha acquisition in a Brisbane growth corridor for 3000 homes.

The 5000m² St Leonards site, near the train station at 472 & 486 Pacific Highway, has recently been zoned for mixed use. Mirvac has bought it from CIMIC Group Ltd for $A121 million.

In Brisbane, Mirvac has bought a 481ha parcel at Greenbank, in the greater Flagstone priority development area 30km south-west of the cbd. The Australian Financial Review estimated it cost $A15-20 million.

Links: Mirvac
Australian Financial Review story
Brisbane Courier-Mail story

Attribution: Lend Lease, Mirvac, AFR, Courier-Mail

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Th2Oct14 – New GPT fund, Brisbane apartments sell fast, Daiwa signs Australian housing JV, consents San Francisco style

GPT launches $A376 million Metro Office Fund
Lend Lease scores with new Brisbane apartments
Australian fund manager signs JV with Daiwa House
And you thought consents were hard to get here?

1.55pm:
GPT launches $A376 million Metro Office Fund

The GPT Group completed its fully underwritten $A255 million bookbuild yesterday for the $A376 million GPT Metro Office Fund, which will open with a portfolio of 6 A-grade metropolitan & business park properties in Sydney, Brisbane & Melbourne.

Link: GPT Metro Office Fund bookbuild completed

Lend Lease scores with new Brisbane apartments

Lend Lease Corp launched its new Brisbane apartment development, The Yards, on Saturday – and sold 160 apartments in 4 hours.

The regeneration development, in the Royal & National Agricultural & Industrial Association Showgrounds, will have 401 residences – 208 in the 18-storey North Yard tower, 182 in the 16-storey South Yard tower standing above King St, the new high street connecting St Paul’s & Gregory Terraces, and 11 terraces.

Prices ranged from $A375,000 for a one-bedroom apartment to $A702,500 for a 2-bedroom & 2-bathroom apartment. Lend Lease said the release was launched in Brisbane & Sydney and 87% of sales were “onshore”.

Links: The Yards
Lend Lease, Brisbane Showgrounds

Australian fund manager signs JV with Daiwa House

Australian real estate fund manager EG signed a joint venture agreement in Tokyo on Tuesday with Japan’s largest home builder, Daiwa House, its Australian subsidiary Cosmos and Sumitomo Forestry.

The Japanese partners will hold a 75% share of EG’s 300-home Summer Hill development in Sydney. It’s Daiwa’s first residential deal in Australia.

EG, founded in 2000, has $A1.25 billion of assets under management on behalf of industry & public sector superannuation funds and a range of family offices.

EG development director Grant Flanigan said the group’s Yield Plus infrastructure fund bought the Summer Hill site in 2007. EG now has an $A3 billion pipeline which it wants to develop over the next 3 years, including Sydney sites in Drummoyne & Five Dock, and inner-city Northbridge in Perth.

Link: EG enters joint venture with Daiwa House

And you thought consents were hard to get here?

Planetizen had a story last week (referring to the original in the New York Times) about the application to place artificial turf on 4 soccer fields in San Francisco’s Golden Gate Park, with floodlighting. Easy? No.

As Auckland’s unitary plan hearings get underway – with simplification an imperative – it’s a good example of how process can become convoluted & destructive.

Links: Planetizen, The story behind the ‘most vetted soccer field in US history’
New York Times, ‘Parks & recreation’ comes to life in San Francisco

Attribution: GPT, Lend Lease, EG, Planetizen

Regular leads: Europe Real Estate, Mingtiandi, Planetizen, World Property Channel

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Lend Lease sells 4 NZ retail centres into wholesale fund

Published 21 October 2011

Lend Lease Corp, of Sydney, has launched a wholesale fund, the Lend Lease Real Estate Partners NZ Fund, to buy a portfolio of 4 shopping centres for $197 million.

The fund will have $115 million equity and Lend Lease will retain a 5.3% co-investment.

Lend Lease bought the 4 centres in October 2010 as part of the consortium purchase of the assets of the ING Retail Property Fund. The portfolio comprises 3 Dress-Smart outlet centres in Auckland, Christchurch & Wellington and Meridian Mall, on Dunedin’s main street.

The sale is subject to offshore investment approval and a number of other conditions and is expected to complete in November.

Want to comment? Go to the forum.

 

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Lend Lease sells 4 NZ retail centres into wholesale fund

Published 21 October 2011

Lend Lease Corp, of Sydney, has launched a wholesale fund, the Lend Lease Real Estate Partners NZ Fund, to buy a portfolio of 4 shopping centres for $197 million.

The fund will have $115 million equity and Lend Lease will retain a 5.3% co-investment.

Lend Lease bought the 4 centres in October 2010 as part of the consortium purchase of the assets of the ING Retail Property Fund. The portfolio comprises 3 Dress-Smart outlet centres in Auckland, Christchurch & Wellington and Meridian Mall, on Dunedin’s main street.

The sale is subject to offshore investment approval and a number of other conditions and is expected to complete in November.

Want to comment? Go to the forum.

 

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Lend Lease sells its half of King of Prussia mall

Published 25 May 2011

Lend Lease Corp Ltd said yesterday it had entered into an agreement to sell its 50% interest in the King of Prussia shopping mall outside Philadelphia to the Morgan Stanley Prime Property Fund at a gross valuation of $US1.25 billion. Net of debt, Lend Lease will receive $US545 million. It expects to book a $US100 million profit on the sale, net of tax & other costs. King of Prussia, on the north-western fringe of Philadelphia, began as a community shopping centre on a 12ha site in 1963. It’s grown to 265,000m² of retail space in 3 centres with 400 retailers & 40 restaurants and is the largest enclosed shopping mall on the US east coast.

Lend Lease acquired its interest in 1996 and Simon Property Group acquired its 50% interest (with associates) in 2003 when it took over the mall’s original developer, Kravco.

Lend Lease group chief executive & managing director Steve McCann said the Australian company would use the $US proceeds principally to repay its ₤sterling-denominated debt and to fund its investment pipeline in the US. The transaction is subject to customary conditions precedent for a sale of this type of partnership asset and is expected to achieve financial close in August.

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Lend Lease to develop $A1 billion masterplanned community

Published 18 April 2011

Lend Lease Group said last week it would develop an $A1 billion masterplanned community at Werribee, 30km south-west of Melbourne in the Wyndham growth corridor.

Lend Lease’s communities business signed a land management agreement for the 438ha site near the Princess Highway, the major transport corridor between Melbourne & Geelong, and also next to the proposed regional rail link. The Werribee community will have 4000 homes and includes the delivery of community infrastructure, including 4 schools, local community, sport & recreation facilities and a neighbourhood shopping centre. Lend Lease group chief executive & managing director Steve McCann said the project had an expected development value of greater than $A1 billion and wouldl be delivered over 10 years, with the first sales expected in mid-2012. “Our vision for Werribee is to deliver a sustainable community leading the market with new innovations in urban design, housing design and community development.”

Want to comment? Go to the forum.

 

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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