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LENDLEASE GROUP — Capital/Financing Update 2023
Dec 17, 2023
65243_rns_2023-12-17_7d7f643a-81a7-4071-b264-538e1f95883d.pdf
Capital/Financing Update
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18 December 2023
Lendlease announces $1.3 billion sale of 12 Australian Communities projects
Lendlease today announced that it had entered into an agreement for the sale of 12 Australian master-planned Communities projects to Stockland Corporation Limited and its capital partner, Supalai Australia Holdings, for $1.3 billion[1] . The transaction is subject to conditions precedent including third-party consents, planning approvals, and Foreign Investment Review Board approval.
Four projects will remain with Lendlease that are nearing completion or are expected to achieve greater future value through additional development activities. These projects have a FY23 book value of $0.2 billion.
The transaction represents a significant milestone for Lendlease as it reweights capital to Investments, reduces gearing and realises the value created in these projects.
The transaction is expected to realise a ~20% premium to book value[2] (pre-tax) and contribute $130 to $160 million to FY24 core operating profit after tax. The exact quantum of the gain will be determined after completion of the transaction. Cash proceeds are anticipated to be broadly equal across FY24 and FY25, with the final instalment due in early Q3 FY25. These proceeds equate to a proforma ~5% reduction to FY23 Group gearing.
Initial approvals and first financial settlement are expected to be received in Q3 FY24.
Lendlease Global CEO Tony Lombardo said: “The $1.3 billion sale of 12 master-planned communities provides Lendlease an opportunity to crystalise the value we have created in these projects.”
“We remain focussed on recycling capital to accelerate our Investments-led strategy and to maintain balance sheet flexibility to pursue future opportunities.”
Processes for further capital recycling initiatives, including China Senior Living and Australian Retirement Living, remain ongoing.
Lendlease’s market guidance for FY24 remains unchanged with Group core operating ROE expected at the lower end of the 8-10% range. The Group continues to forecast its FY24 gearing at or around the mid-point of the 10-20% target range.
1 Transaction value includes the assumed exercise of a $239 million right to acquire certain land parcels. 2 Expected book value at date of transfer.
Lendlease Corporation Limited ABN 32 000 226 228 and Lendlease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lendlease Trust ABN 39 944 184 773 ARSN 128 052 595
Level 14, Tower Three, International Towers Sydney, Exchange Place, 300 Barangaroo Ave, Barangaroo NSW Australia Telephone +61 2 9236 6111 | Facsimile +61 2 9252 2192 | www.lendlease.com
FOR FURTHER INFORMATION, PLEASE CONTACT:
Investors: Media: Michael Vercoe Stephen Ellaway Head of Investor Relations Executive GM, Corporate Affairs +61 488 245 205 +61 417 851 287 [email protected] [email protected]
Authorised for lodgement by the Lendlease Group Disclosure Committee
Lendlease Corporation Limited, ABN 32 000 226 228 Level 14, Tower Three, International Towers Sydney, Exchange Place, 300 Barangaroo Ave, Barangaroo NSW www.lendlease.com