Mitsubishi Estate and Ping An Real Estate to fund Lendlease $1.5 billion project
On 22nd December 2016, the major Australian property group Lendlease announced that construction of Sydney's tallest office building will be funded by Chinese financial conglomerate Ping An Real Estate and Japan's biggest property company, Mitsubishi Estate, after Lendlease secured their backing for the $1.5 billion Circular Quay Tower project.
Emerge Capital Partners has been involved in plans for this project since 2014, and is particularly proud to have been retained by Mitsubishi Estate as buyside financial advisor on the transaction. Emerge Capital Partners have been centrally involved in managing the capital partner process and seeing the joint venture negotiations through to financial close.
Ping An Real Estate and Mitsubishi Estate will have 50 per cent and 30 per cent equity interests respectively, while Lendlease will retain a 20 per cent equity interest in the project.
“Emerge Capital is delighted to have played such an important role in this transaction, and to have advised Mitsubishi Estate in its first investment in Australia. Circular Quay Tower will be Australia’s most prestigious and Sydney’s tallest office building. The interest from the institutional capital markets in Japan and China is evidence of the ongoing appetite for high quality premium commercial real estate in Australia’s key gateway cities.
We expect the strong interest of Japanese institutional capital in the global real estate markets to continue as Japanese institutions and funds continue to look for both growth and yield abroad.”
Circular Quay Tower is a landmark development which will create a new internationally recognised address in Sydney whilst providing for greater connectivity between the Central Business District and Circular Quay.