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GIC to acquire 25.1% stake in Lendlease's A$4.3b Sydney office property trust

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GIC will acquire a 25.1 per cent stake in Lendlease International Towers Sydney Trust (LLITST) from Canada Pension Plan Investment Board and Lendlease. LLITST holds assets located in the Barangaroo Office Precinct in the Sydney Central Business District.

GIC will acquire a 25.1 per cent stake in Lendlease International Towers Sydney Trust (LLITST) from Canada Pension Plan Investment Board and Lendlease Group, the Singapore sovereign wealth fund said on Monday.

The trust owns premium grade office properties in the Barangaroo Office Precinct in the Sydney Central Business District (CBD) which have close proximity to Darling Harbour and extensive amenities, said GIC.

LLITST was established in 2012 and is valued at A$4.3 billion (S$4 billion), according to Lendlease's website.

The transaction is subject to regulatory approval and expected to fully close in Q3 2019.

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"These high-quality assets, situated in the heart of Sydney’s CBD, are expected to generate attractive risk-adjusted returns in the long run," said Lee Kok Sun, chief investment officer, GIC Real Estate.

"As a long-term investor, we will continue to seek good investment opportunities that will add value to our global portfolio," Mr Lee added.

Separately, Australia-listed property developer Lendlease Group is targeting a mid-September Singapore initial public offering for its upcoming global commercial real estate investment trust (Reit).

The Reit - which includes a shopping mall in Orchard Road - will comprise one property each in Singapore and Milan, Italy with a total net lettable area of 1.3 million square feet and an appraised value of S$1.4 billion.