• A new $2bn fund has been created
  • The fund owns Barangaroo Tower 1
  • The fund has been funded with $1.4bn in equity commitments
  • 37.5 per cent of the $1.4bn has been provided by the Qatar Investment Authority

The Qatar Investment Authority (QIA) has taken a stake in the $6bn Barangaroo South financial complex in Sydney, Australia, adding to its expansive international property portfolio.

On June 29, the project’s Australian developer, Land Lease, announced it had created a $2bn wholesale fund, which owns Barangaroo Tower 1 and has been funded with $1.4bn of equity commitments.

A total of 37.5 per cent of the $1.4bn has been provided by the Qatar Investment Authority.

The Lend Lease-managed Australian Prime Property Fund Commercial holds a 25 per cent stake and Lend Lease itself holds the remaining 37.5 per cent as a direct co-investor.

The remaining $600m has been debt funded.

Tower 1 is the largest commercial tower in the three-tower Barangaroo development, which is located near the southern end of Sydney Harbour Bridge.

The development counts financial and insurance sector companies among its future tenants, earning it the nickname Australia’s Canary Wharf.

Financial services company Price Waterhouse Coopers (PWC) are confirmed tenants for Tower 1, as is the international bank HSBC.

“I am delighted to announce the creation of a second investment fund for Barangaroo South, bringing the total equity raised across the precinct to $3.4bn,” Lend Lease chief executive Steve McCann said. “We are introducing a new investor, QIA, alongside investors in the Lend Lease-managed APPF Commercial.”

The three towers that make up the Barangaroo development are currently under construction.

Tower 1 is expected to be completed by the fiscal year 2017, while Tower 2 and Tower 3 are expected to be completed in fiscal year 2016.

The investment in the Barangaroo South project comes after Qatar closed a $4bn deal to takeover London’s Canary Wharf business complex in January this year.

Qatar also owns the UK department store Harrods and the Shard, Europe’s tallest skyscraper.

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