The ratings on Australian Prime Property Fund Retail (APPF Retail), an unlisted Australian-based wholesale property fund, reflect our view of the fund's conservative debt profile, which is typified by a long-term target gearing range of 10%-15%. Also underpinning the ratings is the stable rental-derived cash flow that the fund generates from its high-quality portfolio of shopping-center assets. These credit strengths are partly offset by the risks associated with the fund's ongoing capital-expenditure requirements for center expansions and development, and the fund's exposure to retail property markets, which are subject to cyclical consumer and tenant demand. Lend Lease Real Estate Investments Ltd., the trustee responsible for the management of APPF Retail, leverages the integrated business model of the broader Lend Lease
