Australia's APPF tests market for A$ bond -sources

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SYDNEY, July 14 (Reuters) - Australian Prime Property Fund
(APPF), managed by builder Lend Lease Corp (LLC.AX), is gauging
investor appetite for a bond issue to refinance debt, said
three investors who had been approached by banks about the
matter.

They declined to be named because they were not allowed to
speak to the press. Commonwealth Bank of Australia (CBA.AX) and
Westpac Banking Corp (WBC.AX) were the banks gauging interest,
the sources said.

The unlisted fund told investors during a non-deal roadshow
in June that it was reviewing its options to refinance A$150
million ($118 million) of bonds maturing in September.

One of the fund managers who met with APPF said the fund
was well run with high-quality assets and a low gearing of 10
percent.

APPF, which is rated A by S&P, declined to comment. The
fund has combined assets of A$5 billion, according to its Web
site.

CBA and Westpac did not return phone calls.
($1=1.274 Australian Dollar)
(Reporting by Cecile Lefort; Editing by Mark Bendeich)