Lendlease will divest all the assets in the A$2.9bn (β¬1.6bn) Australian Prime Property Fund Retail (APPFR) to meet redemption requests from investors and is expected to be wound up next year.
ΒιΆΉΣ³» Real Assets understands that more than 80% of the unit holders in the fund are seeking to redeem their investments.
The company said the liquidity window for APPFR is now closed. The fund is one of two vehicles that form the flagship APPF series and was recently embroiled in a public dispute with shareholders, led by superannuation fund Hostplus. The investors had unsuccessfully tried to prize the management right away from Lendlease and move it to another real estate manager, Mirvac.
APPFR owns five assets, including 50% stakes in Sunshine Plaza Queensland, Lakeside Joondalup in Western Australia, and Macarthur Square and Westfield Carindale, both in New South Wales (NSW). It also jointly owns Erina Fair, on the NSW Central Coast, with Koreaβs National Pension Scheme.
Lendlease has received an unsolicited approach from Hong Kongβs Link Reit to buy its stake in three of the shopping centres β Lakeside Joondalup, Macarthur Square and Sunshine Plaza, valued at around A$1.5bn. Erina Fair is in the final stages of being sold to an Australian asset manager, Fawkner, for around A$895m.
Lendlease stated: βGiven the strong market for high-quality retail assets and level of redemption requests received, the trustee has proposed to maximise value for all unitholders through an orderly realisation of the retail portfolio. Lendlease is supportive of the trusteeβs strategy, which may result in Lendlease exiting its co-investment, alongside other unitholders.
βWith a portfolio of superior regional assets, the liquidity strategy will seek to maximise value through competitive processes in the context of a buoyant Australian retail market as evidenced by recent transactions, including a strong outcome expected for the fundβs divestment of Erina Fair.β
Vanessa Orth, managing director investment management Australia at Lendlease, said: βAPPF Retail has consistently delivered strong long-term returns for unit holders, most recently delivering a 9.5% return for the 12 months to 30 September 2025.
βThe fundβs assets are located in strong growth markets and dominate their trade areas. Premium assets like these are difficult to acquire, with an IRR outlook for the portfolio in excess of 11%.
βAs responsible entity for the fund, weβre committed to best practice governance and acting in the best interests of all unitholders, seeking to maximise unitholder returns.β
Orth said the groupβs retail strategy going forward would focus on the growth of its international retail platform, including some A$10bn in additional retail funds under management, its urban retail precincts, and new and existing domestic and international mandates.
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