LENDLEASE GROUP — Investor Presentation 2018

Jun 14, 2018

==> picture [523 x 77] intentionally omitted <==

----- Start of picture text -----

15 June 2018
----- End of picture text -----

Property Australia Market Briefing

Attached is the presentation to be given today by Kylie Rampa, Chief Executive Officer – Property Australia, Lendlease.

The presentation will be webcast live via www.lendlease.com

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors: Media: Justin McCarthy Stephen Ellaway Mob: +61 422 800 321 Mob: +61 417 851 287

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

Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 lendlease.com

==> picture [108 x 77] intentionally omitted <==

Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

==> picture [128 x 26] intentionally omitted <==

Market Briefing: Property Australia Kylie Rampa Chief Executive Officer Property Australia 15 June 2018

Image: Barangaroo South, Sydney

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 2

Market leading, established businesses

Contribution to Group[1]

==> picture [10 x 7] intentionally omitted <==

• $651m HY18 EBITDA, 81% of Group operating result

• $384m Development, $267m Investments

• Total development pipeline of $31.5b, 56% of Group

• Well progressed on major pipeline opportunities

• $21.2b Funds Under Management, 75% of Group

• $7.6b Assets Under Management, 59% of Group

• $4.1b Invested capital, 61% of Group[2]

Business model

==> picture [11 x 7] intentionally omitted <==

==> picture [160 x 141] intentionally omitted <==

Property Australia – current structure

• Development[3]

• Urban Regeneration Communities

• • $15.7b pipeline • $13.8b pipeline • Seven major projects • 15 master planned communities

• • Four gateway cities • c.49,000 lot backlog

• • Development profit • Development profit • Development management fees

Investments

• Retirement Living

• • $1.2b investment[[4]] • 71 Villages (12,664 units)

Investment Management

• $1.2b investment[[4]] • $21.2b FUM

• • 71 Villages (12,664 units) • $7.6b AUM • c.$2b development pipeline • $1.3b Co-investments (c.5,000 units)

• • Investment yield and capital • Fund, asset and property growth on investment: management fees Village Management • Investment yield and capital Development profit growth on co-investments

• Australian Development and Investments segments unless otherwise stated

• Total Australia invested capital position excluding Corporate

• Excludes Infrastructure Development

• 75% investment

==> picture [118 x 23] intentionally omitted <==

3

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Strategy

Group strategic framework

==> picture [280 x 155] intentionally omitted <==

Property Australia Strategy

Maintain leadership positions in target sectors, leverage our competitive advantage, focus on key market trends

• Maintain disciplined origination at this point in the cycle

• Replenish pipeline:

• Major infrastructure led development bids

Alignment with Group strategic direction

Urbanisation

==> picture [51 x 43] intentionally omitted <==

• $15.7b pipeline, seven major projects

• Winner of eight awards at the 2018 PCA Innovation and Excellence Awards[1,2]

Infrastructure

• Opportunity to leverage the integrated model on major infrastructure spend e.g. over station development

==> picture [67 x 26] intentionally omitted <==

Funds growth

==> picture [60 x 36] intentionally omitted <==

• $21.2b Funds Under Management

• CAGR of 17% from FY13 to HY18[3]

Sustainability

==> picture [70 x 41] intentionally omitted <==

  - APPF Commercial ranked first globally in 3 of the last 4 years in the GRESB Real Estate Assessment[4]

• Tactical off market urbanisation opportunities

• Retirement Living development pipeline and community land management deals

• Continue to focus on delivery excellence

• Capability in place to respond to evolving market conditions

• Remain opportunistic through the cycle

• Drive FUM growth through deep capital relationships

==> picture [71 x 31] intentionally omitted <==

==> picture [68 x 49] intentionally omitted <==

Ageing population

• A market leader in the retirement living sector in Australia

Technology

• New delivery technologies e.g. digital design, pre-fabrication, Cross Laminated Timber, online sales channel

• Alignment with Group Portfolio Management Framework

• Property Council of Australia (PCA)

• Awards recognised urbanisation and communities projects

• Compound Annual Growth Rate (CAGR)

• Benchmarks ESG performance of real estate and infrastructure investments

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 4

Strategic direction: deliver on strategic priorities

Current position

Strategic focus

Industry leading platform

Urban Regeneration:

• Demonstrated capability at the front end of the integrated model

• Track record of success in large scale mixed use projects: Barangaroo South, Darling Harbour precinct

• Well positioned with seven major urbanisation projects in four gateway cities

Communities:

• Track record of success; 50 master planned communities delivered over the last 50 years

• Capital efficient and customer centric model

Leverage competitive advantage

Urban Regeneration:

• Resilient model for changing environment

• Large scale/mixed use focus:

• Over station and surrounding renewal opportunities from infrastructure investment

• Off market/non government opportunities

• Continue to provide the investment platform with early access to product

Communities:

• Ensure capital efficient deal structures

• Replenish pipeline; off market opportunities in identified growth corridors

Strong platform

Investment Management:

• Scale Investment Management platform

• Strong relationships with third party capital partners

• Access to high quality product from the urbanisation pipeline

• Retail asset management platform established 1964

Retirement Living:

• Largest Retirement Living owner/operator

Grow the platform

Investment Management:

• Access to high quality product from the Development segment

• Develop new relationships with capital partners

• Explore new funds and sectors to diversify growth

Retirement Living:

• Build out development pipeline

• Focus on customer experience

==> picture [84 x 49] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 5

Creating the best places: showcasing the integrated model Darling Harbour precinct, Sydney

• Development Construction Investments c.$4.7 billion[1] c.$3 billion c.$1.4 billion FUM Places created by FY19

• • Commercial office: 84,000sqm • Residential: c.1,500 apartments, c.1,300 bed student housing • Hotel: 590 room Sofitel hotel • ICC: 35,000sqm exhibition, 8,000 seat theatre, convention centre

==> picture [218 x 137] intentionally omitted <==

----- Start of picture text -----

•
5
4
5
3
2
----- End of picture text -----

==> picture [75 x 106] intentionally omitted <==

----- Start of picture text -----

1
----- End of picture text -----

==> picture [90 x 91] intentionally omitted <==

----- Start of picture text -----

2
----- End of picture text -----

5 6

2

1. Sofitel Hotel

3

1. Convention and exhibition facilities 3. Commercial office 4. Student Housing 5. Residential 6. Mixed use

==> picture [118 x 23] intentionally omitted <==

1. Total development end value including public private partnership

Kingsgate, Brisbane Showgrounds Qld

Victoria Harbour, Melbourne VIC

==> picture [224 x 224] intentionally omitted <==

----- Start of picture text -----

Development
----- End of picture text -----

Darling Square, Sydney NSW

Jordan Springs, NSW

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 7

Development: Urban Regeneration Seven major projects, four gateway cities

Strategy

• Focus on large scale mixed use developments in inner city of target gateway Perth cities Waterbank ($1.3 billion[1] )

• Target infrastructure related and off market opportunities

==> picture [105 x 31] intentionally omitted <==

----- Start of picture text -----

Brisbane
Brisbane Showgrounds
($2.2 billion [1] )
----- End of picture text -----

• FY19 strong expected completions

• FY20-22 expected production phase

Competitive advantage

• Track record: 60 years development experience, over 15 years developing major urbanisation projects

• Integrated model: origination, master planning, funding, managing

==> picture [29 x 28] intentionally omitted <==

• Sector capability: office, retail, residential

• Balance sheet: Financial strength of Group and access to third party capital

Key metrics

• $15.7 billion urbanisation pipeline: Residential $10.2 billion, 9,307 apartments

• Commercial $5.5 billion, 412,000sqm

Sydney Circular Quay Tower VIC ( $1.7 billion[1] ) Darling Square ($1.4 billion[1] ) Barangaroo South Melbourne ($3.4 billion[1] ) Melbourne Quarter ($2.5 billion[1] ) Victoria Harbour ($2.5 billion[1] )

==> picture [118 x 23] intentionally omitted <==

1. Total remaining estimated end value

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 8

Development: Urbanisation in delivery

Apartment building completion profile[1] ($m)

==> picture [319 x 388] intentionally omitted <==

----- Start of picture text -----

FY17 FY18 FY19 FY20
900 (all in HY18)
750
600
450
300
150
0
Commercial building completion profile sqm (‘000g completion profile sqm (‘000 completion profile sqm (‘000pletion profile sqm (‘000letion profile sqm (‘000profile sqm (‘000rofile sqm (‘000qm (‘000m (‘000(‘000‘000)
60
FY19 FY20 FY21 FY22
50
40
30
20
10
0
CQT
St
Innov.
One Melb Qtr 25 King St 839 Collins Two Melb Qtr Uni of Melb
----- End of picture text -----

Commercial building completion profile sqm (‘000g completion profile sqm (‘000 completion profile sqm (‘000pletion profile sqm (‘000letion profile sqm (‘000profile sqm (‘000rofile sqm (‘000qm (‘000m (‘000(‘000‘000)

1. Based on pre sales value and actual or expected completion date of underlying building

2. Total number of units, staged launch

Apartments

==> picture [10 x 7] intentionally omitted <==

• De risked via pre sales and construction pricing

• Focused on managing remaining settlements:

• Further progress on the settlement of sold and completed apartments from FY17/HY18

• Margin on remaining unsettled units fully provisioned

• Accessible pipeline – subject to market conditions:

• Barangaroo: One Sydney Harbour (775[2] apartments, 3 buildings) Victoria Harbour: Collins Wharf 2 (340 apartments)

• Melbourne Quarter: Residential tower 2 (769 apartments)

Commercial

==> picture [11 x 7] intentionally omitted <==

• De risked via pre leasing, forward sales and construction pricing

• Capital efficient land payment structures typically utilised

• Two Melbourne Quarter (commenced March 2018):

• Fund through structure (minimal Lendlease capital)

• Forward sold to APPF Commercial and First State Super

• c.50,000sqm, c.$550 million end development value Expected completion FY21

• Secured office pipeline yet to commence includes:

• Melbourne Quarter: One building c.55,000sqm

• Brisbane Showgrounds: Two buildings c.33,000sqm

• Barangaroo South, Sydney: One building c.11,000sqm

==> picture [118 x 23] intentionally omitted <==

Bris Syd Melb

9

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Development: Urbanisation growth opportunities Well progressed on future pipeline

Strategic approach

• Track record of delivering long term, transformational projects in key city locations

• Strive for leadership position in the ‘business of cities’: master planning; connectivity; innovation; and legacies

• Focus remains on securing large scale projects > $1 billion in end value that are delivered over multiple property cycles

• Capability via our integrated model to combine property development opportunities with adjacent major transport infrastructure

• Well positioned to respond to evolving market conditions: infrastructure spending; housing affordability; credit tightening and capital controls; and disruption

Future opportunities

• Sourcing land management deals and off market positions with land owners that may lead to urban renewal opportunities

• Government infrastructure related development projects:

• Secured Town Hall, Melbourne Metro over station development, including office building

• Significant pipeline in and coming to market: Victoria Cross and Pitt Street (Sydney Metro); Central Station; Cross River Rail

• Education and Health related urbanisation opportunities:

• Secured University of Melbourne innovation precinct

• Further opportunities being assessed

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 10

Development: Communities 50 years’ experience, over 50 communities developed

Strategy

• Deliver market leading offering for our customers, underpinned by a scalable national platform

• Secure additional sites in key growth corridors

• Unlock value at various phases – acquisition, rezoning, planning and delivery

Competitive advantage

• Queensland c.28,900 land units - Elliot Springs

• • Fernbrooke Ridge
• • Springfield Lakes
• • Yarrabilba

Secured post HY18 c.2,800 land units - Shoreline[2]

• Scale

• Track record

• Exceptional customer insights and service

• Place and product leadership

• Community partnerships

Key metrics

• $13.8 billion pipeline

• 15 projects across five states[1]

• c.49,000 lot backlog

• Target 3,000 – 4,000 lots p.a.

Western Australia c.1,900 land units - Alkimos Beach

• South Australia

• c.1,900 land units - Alkimos Beach c.370 land units -

• • Alkimos Vista Blakes Crossing

  • New South Wales c.8,800 land units - Bingara Gorge

  • • Calderwood Valley
  • • Jordan Springs
  • • The New Rouse Hill - Gilead[2]

• Victoria c.9,200 lands units - Atherstone - Aurora - Harpley

• Not yet operational

==> picture [118 x 23] intentionally omitted <==

1. Excludes projects secured post 31 December 2017

==> picture [471 x 382] intentionally omitted <==

----- Start of picture text -----

Sunshine Plaza, Maroochydore Qld
Investments
----- End of picture text -----

==> picture [473 x 382] intentionally omitted <==

----- Start of picture text -----

Erina Fair, Erina NSW
Investments
----- End of picture text -----

==> picture [471 x 382] intentionally omitted <==

----- Start of picture text -----

Investments
Barangaroo South, Sydney NSW
----- End of picture text -----

==> picture [473 x 382] intentionally omitted <==

----- Start of picture text -----

Investments
Elliot Gardens, Port Elliot, SA
----- End of picture text -----

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 12

Investments: Investment Management Scale platform

FUM (by asset class)

Strategy

==> picture [133 x 158] intentionally omitted <==

----- Start of picture text -----

4% 2%
36%
58%
Retail Commercial
Industrial Other
----- End of picture text -----

• Grow funds under management

• Leverage existing and develop new capital relationships

• Explore new funds and sectors to diversify growth

• Leverage the integrated model for product

Competitive advantage

FUM (by investment structure)

==> picture [131 x 144] intentionally omitted <==

----- Start of picture text -----

14%
86%
Fund Mandate
----- End of picture text -----

• Deep capital relationships with c.80 capital partners

• Leading governance and sustainability credentials

• Access to product via the integrated model

• In-house retail management

Key metrics

• $21.2 billion Funds Under Management

• $7.6 billion Assets Under Management

• $1.3 billion Co-investments – provides alignment with capital partners

Investor type

Source country of capital

==> picture [11 x 7] intentionally omitted <==

==> picture [382 x 224] intentionally omitted <==

----- Start of picture text -----

1% 1% 1%
7%
6% [6%]
7%
8%
8%
58% 12%
18% 67%
Superannuation/Pension Funds Australia Middle East
Sovereign Wealth Funds
Corporations/Financial Institutions US & Canada Asia
Government/Statutory/Authority Europe UK
Fund Platforms
Insurance/Reinsurance
Other
----- End of picture text -----

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 13

Investments: Retirement Living Australia’s largest retirement living operator

Strategy

• Deliver market leading offering across scalable national platform

• Queensland - 12 villages

• • 2,931 units

• Build out development pipeline

• Identify consolidation opportunities given high market fragmentation

• Deliver continuum of care via partnerships with aged care providers

• Unitised structure facilitates introduction of capital partners

Competitive advantage

• Scale/National platform

• Portfolio quality

• Strong brand recognition

• NSW New South Wales - 17 villages

• Contract innovation -

• ACT 3,301 units

• Key metrics VIC

• Western Australia

• • $1.2 billion equity investment - 10 villages

• • 71 villages across Australia - 1,631 units Australian Capital Territory -

• • 12,664 retirement units South Australia - 2 villages220 units - 4 villages

• • Development pipeline of c.5,000 units - 511 units Victoria

• medium term target 300 - 500 p.a. - 26 villages - 4,070 units

• Contract innovation

• New medium density sites: Brisbane Racing Club, Richmond, Innovation campus at University of Wollongong[1]

==> picture [118 x 23] intentionally omitted <==

1. Preferred

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 14

Outlook

Well placed for future success

• Competitive advantage – track record, integrated model, balance sheet strength and capabilities

• Integrated model positions us well for major infrastructure led government bids

• Disciplined execution and origination across our leading platforms of Urban Regeneration, Communities, Retirement Living and Investment Management

• Continue to refine the capabilities to respond to changing market conditions

Replenishing the pipeline

• Focus on urbanisation projects in targeted gateway cities

• Target infrastructure-led property development opportunities with internal partners

• Replenish the communities pipeline through large scale capital efficient land acquisitions in target growth corridors

• Respond to the ageing population through accelerating retirement development and partnerships with aged care service providers

• Expand and diversify investment platform through delivery of development pipeline:

• Embedded FUM from projects in delivery

• Conversion of already secured development pipeline into FUM

==> picture [118 x 23] intentionally omitted <==

==> picture [128 x 26] intentionally omitted <==

Appendix

Image: Barangaroo South, Sydney

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 16

Development: Historical

Development EBITDA ($m)[1,2]

Development Pipeline ($b)[2]

==> picture [324 x 141] intentionally omitted <==

----- Start of picture text -----

497.8
391.5 384.0
336.8
FY15 FY16 FY17 HY18
----- End of picture text -----

==> picture [324 x 156] intentionally omitted <==

----- Start of picture text -----

31.5
30.9
29.0
26.9
FY15 FY16 FY17 HY18
----- End of picture text -----

Urbanisation Pipeline ($b)[2]

==> picture [10 x 8] intentionally omitted <==

Communities and Retirement Pipeline ($b)[2]

==> picture [11 x 8] intentionally omitted <==

==> picture [660 x 151] intentionally omitted <==

----- Start of picture text -----

17.5 15.8
14.7
12.1
16.2 11.5
15.7
14.8
FY15 FY16 FY17 HY18 FY15 FY16 FY17 HY18
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

1. Includes earnings from Infrastructure Development

2. Rounded to the nearest $0.1 billion

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 17

Development: by product

Communities Completions ($m)

Communities Completions (lots)

==> picture [659 x 152] intentionally omitted <==

----- Start of picture text -----

817.5
779.8 3,822
716.1
668.3 3,402
3,033 3,060
457.5 437.6 2,295
1,780
FY13 FY14 FY15 FY16 FY17 HY18 FY13 FY14 FY15 FY16 FY17 HY18
----- End of picture text -----

Apartment Completions

==> picture [10 x 8] intentionally omitted <==

==> picture [324 x 153] intentionally omitted <==

----- Start of picture text -----

Value ($m) Volume (units)
1,807
1,051
876 1,327.3
173 215 902.7
16 794.1
200.9
124.8
16.6
FY13 FY14 FY15 FY16 FY17 HY18
----- End of picture text -----

Commercial Completions

==> picture [11 x 8] intentionally omitted <==

==> picture [324 x 153] intentionally omitted <==

----- Start of picture text -----

Value ($b) Volume (sqm '000)
100 109
63
- - - 2.1
1.3
Data not disclosed 0.7
For these periods
- - -
FY13 FY14 FY15 FY16 FY17 HY18
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 18

Development: major urbanisation project summary

Project	Project secured1	Delivery commenced1	Expected completion date1,2	Residential backlog (units)	Commercial backlog sqm (‘000)3	Total remaining end value ($b)4	Land payment model
Barangaroo South, Sydney	2009	2012	2023	775	16	3.4	Staged payment
Victoria Harbour, Melbourne	2001	2004	2025	2,352	61	2.5	Land management
Melbourne Quarter, Melbourne	2013	2016	2024	1,680	136	2.5	Land management
Brisbane Showgrounds, Brisbane	2009	2011	2029	2,186	84	2.2	Land management
Circular Quay Tower, Sydney	2017	2017	2022	-	55	1.7	Upfront payment5
Darling Square, Sydney	2013	2013	2019	967	7	1.4	Staged payment
Waterbank, Perth	2013	-	2028	1,305	12	1.3	Land management
Other				42	41	0.7
Total urbanisation				9,307	412	15.7

1. Financial year

2. Subject to change in delivery program

3. Net lettable area and subject to change

4. Reflects the remaining estimated total project end development value. Values for any project can vary and are subject to change

5. Fully paid

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 19

Development: Urbanisation buildings in delivery

Apartments for sale[1]

Project1 City	Building Ownership (%) Total Units Presold (%) Units Presold1 Presales Revenue1 ($m) Completion Date2
Darling Square Sydney	Darling North, Harbour Place andTrinityHouse 100 577 100 577 808 FY19
	Darling Rise, Barker House and Arena 100 390 100 390 493 FY19
Melbourne Quarter Melbourne	East Tower 50 719 73 522 336 FY20
Victoria Harbour Melbourne	Collins Wharf 1 100 321 87 280 258 FY19

Commercial building completion profile[3]

Project	City	Capital model	sqm ('000)	Building	Completion date
University of Melbourne Innovation Precinct	Melbourne	BOOT4	27	Innovation Precinct	FY21
Melbourne Quarter	Melbourne	Fund through5	26	One Melbourne Quarter	FY19
Melbourne Quarter	Melbourne	Fund through5	50	Two Melbourne Quarter	FY21
Victoria Harbour	Melbourne	Fund through5	38	839 Collins Street	FY19
Circular Quay Tower	Sydney	Joint venture	55	Commercial	FY22
Brisbane Showgrounds	Brisbane	Fund through5	15	25 King	FY19

Indicative conversion timing of secured commercial pipeline to FY22

City	Project	# Buildings	Sector	sqm ('000)	H2 FY18	FY19	FY20	FY21	FY22
Melbourne	Melbourne Quarter	2	Office/Retail	60
Brisbane	Brisbane Showgrounds	2	Office	33
Sydney	Barangaroo South	1	Office	11
Total		5		104

1. Closing pre sales balance as at 31 December 2017 on apartments in delivery only. Excludes completions recognised in HY18

2. Expected completion date subject to change in delivery program

3. Based on expected completion date of buildings, subject to change. Not indicative of cash or profit recognition

4. Build, Own, Operate, Transfer

5. A funding model structured through a forward sale to a capital partner resulting in staged payments prior to building completion

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 20

Investments: Historical and fund summary

Growth in FUM ($b)

==> picture [11 x 7] intentionally omitted <==

Investments EBITDA ($m)

==> picture [312 x 160] intentionally omitted <==

----- Start of picture text -----

CAGR of 17%
21.2
19.3
16.5
13.8
10.9
10.3
FY13 FY14 FY15 FY16 FY17 HY18
----- End of picture text -----

==> picture [324 x 147] intentionally omitted <==

----- Start of picture text -----

393.3
348.5
329.5
305.1
267.4
FY14 FY15 FY16 FY17 HY18
----- End of picture text -----

Major fund summary[1]

==> picture [14 x 8] intentionally omitted <==

	APPFR2	APPFC3	APPFI4	LLITST5	LLOITST6
Total assets ($b)	5.4	4.5	0.8	3.8	2.4
Gearing (%)	11.5	14.7	6.5	17.8	19.8
Co-investment (%)	1.7	7.7	10.6	15.0	12.5
Co-investment ($m)	77.0	285.0	72.4	446.5	230.2
Asset class	Retail	Commercial	Industrial	Commercial	Commercial
Number of assets	11	21	29	4	1
Occupancy (%)	98.1	90.1	95.0	83.4	94.0
Weighted average cap rate (%)	5.1	5.3	7.0	4.8	4.8

1. Select major funds and does not comprise Lendlease’s complete Funds Management Platform

2. Australian Prime Property Fund Retail

3. Australian Prime Property Fund Commercial

4. Australian Prime Property Fund Industrial

5. Lendlease International Towers Sydney Trust

6. Lendlease One International Towers Sydney Trust

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 21

Investments: Retirement Living

Business structure facilitates capital partners

• Established retirement village portfolio, operating platform, development capabilities and associated development pipeline all transferred into a new vehicle

Contract innovation

==> picture [11 x 7] intentionally omitted <==

• Deferred Management Fee Model: customer buys into a village at a lower entry price and pays fees upon departure (traditional model)

• Unitised structure facilitates the introduction of capital partners

• Cornerstone investor – APG Asset Management acquired 25 per cent of the business. Lendlease retained 75 per cent ownership

• Prepaid Plan: customer pays upfront and retains the capital gain on exit

• Refundable Contribution: customer pays a higher contribution on entry which is fully refunded when they leave

• Pay as you go: monthly payment, no lump sum

Growth opportunities

==> picture [11 x 7] intentionally omitted <==

• Consolidation opportunities where existing operating platform can be leveraged

• Acquisitions of suitable residential development site(s) may provide an opportunity to enhance quality and scale of portfolio

• Higher-density, apartment-style villages to meet growing demand for premium retirement village options in metropolitan areas

• New developments: Brisbane Racing Club; Richmond; University of Wollongong[1]

==> picture [324 x 191] intentionally omitted <==

----- Start of picture text -----

Artist’s impression: University of Wollongong Innovation Campus
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

1. Preferred

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 22

Barangaroo South Sydney

$8.7 billion total estimated end development value

• Secured 2009[1] , expected completion 2023[1,2]

• c.60% complete by estimated end value

• $3.4 billion remaining estimated end development value

Project Structure

• Project Development Agreement with Barangaroo Delivery Authority (BDA)

• Agreed land value, paid in instalments

Project Scheme

• Mixed use regeneration scheme, comprising:

• c.280,000 sqm office space

• c.900 residential units

• c.18,000sqm retail

• 350 room luxury hotel (Crown Sydney Resort)[3]

• Financial year

• Subject to change in delivery program

• Not included in development end value

==> picture [323 x 410] intentionally omitted <==

----- Start of picture text -----

Sydney CBD
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

23

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Barangaroo South Sydney

Award winning precinct

• Over 50 awards including:

• RLB Australian Development of the Year[1] Best Sustainable Development – New Buildings[1] Best Workplace Project[1]

• Best Mixed-Use Development[1] People’s Choice Award[1]

Sustainability outcomes

• Barangaroo South: 6 Star Green Star Communities Pilot v0.2 certified rating[2]

Targeted sustainability outcomes

• Australia’s first large scale carbon neutral community

• Towers Two and Three: 6 Star Green Star Design & As Built v1.1 certified rating[2]

• Tower One and International House: 6 Star Green Star Office Design v3 certified rating[2]

• Towers One, Two and Three: Platinum WELL Core & Shell certification

• Skills training for c.10,800 site workers via the Barangaroo Skills Exchange

==> picture [118 x 23] intentionally omitted <==

1. Property Council of Australia Innovation & Excellence Awards 2018

2. Certified by the Green Building Council of Australia (GBCA)

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 24

Barangaroo South Current Masterplan

Remaining stages

• c.12,000sqm office and retail

• c.775 residential units (3 buildings)

• Crown Integrated Resort[1]

Delivered to date

• c.270,000sqm office

• c.16,000sqm retail

• c.159 residential units (2 buildings)

• Sale of development rights – Crown Integrated Resort

==> picture [658 x 309] intentionally omitted <==

----- Start of picture text -----

Office Office
Resi
T1 T2 T3
Resi Resi
Retail
Crown
Resi / Retail
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

1. Lendlease Building contracted to Crown to deliver build

25

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Victoria Harbour Melbourne

$6.8 billion total estimated end development value

• Secured 2001[1] , expected completion 2025[1,2]

• c.63% complete by estimated end value

• $2.5 billion remaining estimated end development value

Project Structure

• Project Development Agreement with Development Victoria[3]

• Land paid for in instalments, linked to development progress

Project Scheme

• Mixed use regeneration scheme, comprising:

• c.5,000 residential units

• c.260,000sqm office space

• c.22,000sqm of retail

Community investment

• c.10,000sqm community facilities

==> picture [323 x 314] intentionally omitted <==

c.2.5kms from Melbourne CBD

1. Financial year

2. Subject to change in delivery program

3. Formerly Places Victoria

==> picture [118 x 23] intentionally omitted <==

26

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Victoria Harbour Melbourne

Sustainability outcomes

• Victoria Harbour: 6 Star Green Star Communities Pilot v0.2 certified rating[1]

• Australia’s highest concentration of green certified buildings including:

• The Gauge and ANZ Centre: 6 Star Green Star - Office As Built v2 certified rating[1] Library at the Dock: 6 Star Green Star Public Building Design Pilot[1]

==> picture [118 x 23] intentionally omitted <==

1. Certified by the Green Building Council of Australia (GBCA)

27

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Victoria Harbour

Current masterplan

==> picture [659 x 395] intentionally omitted <==

----- Start of picture text -----

Remaining stages
• c.2,000 residential units (6 buildings)
In delivery
• c.38,000sqm office building (839 Collins Street)
• 321 residential units (Collins Wharf 1) – 87% presold
Delivered to date
• c.230,000sqm office (8 buildings)
• c.2,700 residential units (13 buildings)
• c.20,000sqm retail
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 28

Melbourne Quarter Melbourne

$2.7 billion total estimated end development value

• Secured 2013[1] , expected completion 2024[1,2]

• c.9% complete by estimated end value

• $2.5 billion remaining estimated end development value

Project Structure

• Project Development Agreement with Development Victoria[3]

• Land paid for in instalments, linked to development progress

Project Scheme

• Mixed use regeneration scheme, comprising:

• c.130,000sqm office space across three buildings

• c.1,600 residential units

• c.4,000sqm of retail

==> picture [323 x 315] intentionally omitted <==

c.1.5kms from Melbourne CBD

1. Financial year

2. Subject to change in delivery program 3. Formerly Places Victoria

==> picture [118 x 23] intentionally omitted <==

29

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Melbourne Quarter Melbourne

Sustainability outcomes

• Melbourne Quarter: 6 Star Green Star Communities Pilot v0.2 certified rating[1]

Targeted sustainability outcomes

• Commercial buildings: 6 Star Green Star Design & As Built certified ratings

• • Apartments: 5 Star Green Star certified ratings

==> picture [118 x 23] intentionally omitted <==

1. Certified by the Green Building Council of Australia (GBCA)

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 30

Melbourne Quarter Current masterplan

In delivery

• 26,000sqm office building (One Melbourne Quarter)

• 50,000sqm office building (Two Melbourne Quarter)

• 719 residential units (East Tower)

Remaining stages

• c.55,000sqm office

• c.900 residential units (2 buildings)

• c.4,000sqm mixed use, amenity

==> picture [118 x 23] intentionally omitted <==

31

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Brisbane Showgrounds Brisbane

$2.8 billion total estimated end development value

• Secured 2009[1] , expected completion 2029[1,2]

• c.21% complete by estimated end value

• $2.2 billion remaining estimated end development value

Project Structure

• Project Development Agreement with the Royal National Agricultural and Industrial Association of Queensland (RNA)

• Land paid for in instalments, linked to development progress

Project Scheme

• Mixed use regeneration scheme comprising:

• c.3,000 residential units

• c.90,000sqm commercial office space

• c.8,000sqm of retail

==> picture [323 x 410] intentionally omitted <==

----- Start of picture text -----

c.1.6kms from Brisbane CBD
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

1. Financial year

2. Subject to change in delivery program

32

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Brisbane Showgrounds Brisbane

Sustainability outcomes

• Brisbane Showgrounds: 6 Star Green Star Communities v1 certified rating[1]

• Kingsgate: 6 Star Green Star Office As Built v3 certified rating[1]

• Kingsgate: First building to be awarded a 6 Star Base Building NABERS Energy rating in Queensland without using green power

• 25 King Street: Set to be the tallest and largest engineered timber office building in Australia

==> picture [118 x 23] intentionally omitted <==

1. Certified by the Green Building Council of Australia (GBCA)

33

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Brisbane Showgrounds Current masterplan

==> picture [658 x 395] intentionally omitted <==

----- Start of picture text -----

Remaining stages
• c.59,000sqm office (4 buildings)
Delivered to date •• c.16,000sqm office (1 building)c.750 residential units (2 buildings) •• c.2,100 residential units (8 buildings)c.2,000sqm retail
• c.6,000sqm retail
In delivery
• 15,000sqm office building (25 King)
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

34

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Circular Quay Tower Sydney

$1.7 billion total estimated end development value

• Secured 2017[1] , expected completion 2022[1,2]

• $1.7 billion remaining estimated end development value

Project Structure

• Development Joint Venture formed in December 2016, comprising 50% Ping An Real Estate, 30% Mitsubishi Estates and 20% Lendlease

• Site originally owned by Lendlease Development prior to formation of Joint Venture

Project Scheme

Commercial office scheme, including retail spaces and a community building

• c.55,000sqm commercial office tower

==> picture [323 x 410] intentionally omitted <==

----- Start of picture text -----

Sydney CBD
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

1. Financial year

2. Subject to change in delivery program

35

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Circular Quay Tower Sydney

==> picture [116 x 11] intentionally omitted <==

----- Start of picture text -----

Sustainability outcomes
----- End of picture text -----

• Platinum WELL Core & Shell Pre-certification

• Targeted sustainability outcomes • 6 Star Green Star Design and As Built rating

==> picture [118 x 23] intentionally omitted <==

36

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Circular Quay Tower Current masterplan

==> picture [659 x 395] intentionally omitted <==

----- Start of picture text -----

In delivery (early works)
• 55,000sqm office building (Circular Quay Tower) FY22,
Development joint venture
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

37

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Darling Square Sydney

$2.7 billion total estimated end development value

• Secured 2013[1] , expected completion 2019[1,2]

• c.49% complete by estimated end value

• $1.4 billion remaining estimated end development value

Project Structure

• Project Development Agreement with Property New South Wales[3]

• Agreed land value, paid in instalments

Project Scheme

• Mixed use regeneration scheme:

c.1,500 residential units

• c.26,000sqm commercial office space

• c.12,000sqm of retail, community and leisure uses

==> picture [323 x 260] intentionally omitted <==

• 1,300 bed student accommodation

• 590 room luxury hotel (Sofitel)

c.1km from Sydney CBD

1. Financial year

2. Subject to change in delivery program

3. Formerly Infrastructure NSW

==> picture [118 x 23] intentionally omitted <==

38

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Darling Square Sydney

• Community outcomes • Trafalgar Place chosen by the Mayor of London as ‘London’s Best New Place to Live’ as part of the London Planning Awards

• • One of 19 projects worldwide included in C40 Cities Climate Positive Development Programme

• • Jobs provided for 927 local residents, 416 of whom were previously unemployed

Sustainability outcomes

• Darling Square: 6 Star Green Star Communities v1 certified rating[1]

• Commercial building: 6 Star Green Star Design & As Built v1.1 certified rating[1]

Targeted sustainability outcomes

• Apartments: 5 Star Green Star certified ratings

• Community Building: 5 Star Green Star certified rating

• • Hotel: 4 Star Green Star certified rating

==> picture [118 x 23] intentionally omitted <==

1. Certified by the Green Building Council of Australia (GBCA)

39

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Darling Square Sydney

Delivered to date

• c.26,000sqm office building

• 590 room Sofitel Hotel

• 539 residential units (Wirth House, St Leon, Darling House)

• • c.2,000sqm retail and community

• 650 bed student accommodation

In delivery

• 577 residential units (Darling North, Harbour Place and Trinity House) – 100% presold

• 390 residential units (Darling Rise, Barker House and Arena – 100% presold

• c.10,000sqm retail and community

• 650 bed student accommodation

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 40

Waterbank Perth

$1.3 billion total estimated end development value

• Secured 2013[1] , expected completion 2028[1,2]

• Infrastructure and enabling works commenced in 2017

• Private lot development expected to commence in 2019

Project Structure

• Project Development Agreement with Metropolitan Redevelopment Authority (MRA, WA State Government)

• Land payments funded from project development proceeds

Project Scheme

• Mixed use regeneration scheme:

• c.1,300 residential units

• c.150 affordable housing units

• c.10,000sqm commercial office space

• c.2,500sqm retail and community uses

Community investment

• c.4 hectares of riverside public realm

• Subject to change in delivery program

==> picture [323 x 410] intentionally omitted <==

----- Start of picture text -----

c.2.5kms from Perth CBD
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

1. Financial year

41

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018

Waterbank Perth

==> picture [102 x 10] intentionally omitted <==

----- Start of picture text -----

Sustainability targets
----- End of picture text -----

• Waterbank: 6 Star Green Star Communities rating

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 42

Waterbank

Current masterplan

==> picture [659 x 395] intentionally omitted <==

----- Start of picture text -----

Yet to commence
• c.1,300 residential units (5 buildings)
• c.10,000sqm office
----- End of picture text -----

==> picture [118 x 23] intentionally omitted <==

LENDLEASE MARKET BRIEFING: PROPERTY AUSTRALIA – JUNE 2018 43

Important notice

This document has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) ( Lendlease ) in good faith. Neither Lendlease, nor any of its controlled entities including Lendlease Trust (together referred to as the Lendlease Group ) makes any representation or warranty, express or implied, as to the accuracy, completeness, adequacy or reliability of any statements, estimates, opinions or other information contained in this document (any of which may change without notice). To the maximum extent permitted by law, Lendlease, the Lendlease Group and their respective directors, officers, employees and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may be suffered, howsoever arising, through use or reliance on anything contained in or omitted from this document.

This document has been prepared without regard to the specific investment objectives, financial situation or needs of any recipient of this presentation. Each recipient should consult with, and rely solely upon, their own legal, tax, business and/or financial advisors in connection with any decision made in relation to the information contained in this presentation.

Prospective financial information and forward looking statements, if any, have been based on current expectations about future events and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations expressed in or implied from such information or statements.

Lendlease Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS). This document also includes material that is not included in Lendlease Group’s statutory results and contains non-IFRS measures. Material that is not included in Lendlease Group’s statutory results has not been subject to audit.

A reference to HY18 refers to the half year period ended 31 December 2017 unless otherwise stated. All figures are in AUD and as at 31 December 2017 unless otherwise stated.

==> picture [118 x 23] intentionally omitted <==