Lendlease sets pace in Melbourne offices with La Trobe Street buy

Development giant Lendlease has signalled it faith in Melbourne’s office market and is preparing for its next run of developments.

Lendlease has bought 469 La Trobe Street, which sits beside its 485 La Trobe Street tower.

Development giant Lendlease has signalled it faith in Melbourne’s office market and is preparing for its next run of developments by snapping up a La Trobe Street office tower for $203m in the city’s CBD.

The group purchased the building at 469 La Trobe St as part of the sales by reinsurance group Swiss Re. The deal gives the developer control of the tower that sits next to its adjoining 485 La Trobe St.

In the long term, Lendlease will have a significant redevelopment site overlooking Melbourne’s Flagstaff Gardens

Developers are undeterred by recent lockdowns as major corporations press ahead with demand for modern office space.

The Swiss Re deal was brokered by JLL’s Luke Billiau and Simon Storry and CBRE’s Kiran Pillai and Scott McGlone.

The exit is a coup for AMP Capital as Swiss Re bought earlier in the property cycle and will exit at a handsome profit. Swiss Re picked up the tower for $160.5m from CIMB-TrustCapital Australian Office Fund No.1 in 2017.

The deal is also in keeping with Lendlease’s desire to keep its development pipeline rolling, adding new buildings under its APPF commercial series.

The same fund is also buying a half stake in Sydney at 200 ­George St in a deal valuing the entire tower at $1.15bn.