After a turbulent few years with significant losses across a number of segments, Lend Lease has attempt to regain security holder trust by refining its strategy for the next decade.
Group Chief Executive Officer and Managing Director, Steve McCann launched the new Strategy this week with an ambitious plan to accelerate development of its project pipeline by leveraging the Groups competitive advantages in a more focused but scalable operation.
Over the next 10 years the Group intends to expanding and up weighting those areas of the business that have the greatest potential to add to security holder value. The Group's track record in urbanisation projects across global gateway cities and its ability to deliver these via an end to end capability is a key competitive advantage for Lendlease.
The Groups' pipeline currently consists of 21 major urbanisation projects worth $99bn across 17 gateway cities and extends across residential and commercial sectors with almost 50% of the exposure in Europe with the balance rough split between Australia and the US. The list includes;
Two major urbanisation projects :
- Thamesmead Waterfront, London: $15.1b
- San Francisco Bay Area project: $21.8b
o Preferred bidder on Birmingham Smithfield: $2.8b
$113b development pipeline, including;
- 13 major apartment buildings in delivery across six gateway cities
o One Sydney Harbour, Tower 1 development joint venture formed post balance date
o 1,418 units presold in delivery: $2.3b
o 1,624 units for rent in delivery: $1.7b
- 1,725 communities lots presold: $0.5b
- c.376,000 sqm of commercial space in delivery across seven major buildings: $5.8b (Sydney, Milan, Singapore, London)
- Remaining secured pipeline not yet in delivery
o 53,183 apartment units: c.$66b
o c.2,039,000 sqm of commercial space: c.$25b
o 32 buildings in various stages of planning and conversion
o Additional 25+ buildings in pipeline
Lendlease intend to focus efforts on sectors designed to withstand real estate cycles with a delivery model which can adapt to market changes. The ability to defer land payments or provide more capital efficient land funding arrangements cushion the impacts of a slower market. The group will continue to focus on Residential and Office placemaking and use the structural headwinds in retail to look for conversion opportunities.
Lendlease expects to accelerate development production from an average rate of $4.3bn per annum to $8bn per annum as more projects emerge from planning phases and investment appetite from existing partners grows.
The Group are investing heavily in its digital capabilities including Digital Twin designs and standardised platforms for delivery and management of large scale projects.
For more information refer to Strategy Presentation.
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