Lend Lease Corporation Limited

From IntFX

See also: LLC for realtime information.

Lend Lease Corporation is a highly diversified international group into property sector. It has been one of the market leaders in selected geographies. The company operates in following three sectors:-

Retail & Residential property: - Australia, UK, Singapore & US. It is involved in the development of large-scale urban communities, including senior living. It has major share in specialist US military housing privatization market

Property Investment management: - Australia, UK and Asia. It provides real estate investment management services, including direct and indirect ownership interests in property investments

Project Management Construction & PFI (Private Finance Initiative):- Across 40 countries including US, Asia Pacific, Europe and Middle East. It comprises construction, project management, engineering and design services. It also provides public-private partnership and is committed to operate injury and incident free.

Lend Lease Ventures evaluates and develops opportunities for conversion to new business lines:

Corporate Ventures focuses on prioritizing and transforming internally generated ideas and innovations, which have application across business lines and geographies, into operating business ventures capable of creating value over a five to seven year time frame.

Venture Capital focuses on leveraging companies position in current and emerging markets

Following were few major activities of company in FY 2007.

By end of FY 2006 company acquired The Crosby Group plc and the final 12.5% minority stake in Actus Lend Lease

The Company’s major project wins in FY 2007 have been Elephant & Castle, Preston & Stratford City

Lend Lease reaches financial close on £320 million Lancashire Waste PFI project in UK with GRD Limited

The Company selected to enter exclusive negotiations to develop £2 billion Olympic Village at Stratford City, London

The Company reaches financial close on US$275 million master-planned family housing project at Fort Knox, Kentucky

LLC has primary listings on the Australian Stock Exchanges under the ticker LLC and is headquartered in Australia. The company has prominence in three countries namely Australia, UK and Singapore. Company has S&P / Moody’s credit rating for BBB-/Baa3.

[edit] Strategy

Lend Lease has longer term earnings visibility with clear focus on retail development, privatization, consider acquisitions in US & UK and prudent investment management by going for annuity style earning. They wish to grow business by considering new business opportunities and tap new geographies. Also their current focus is to convert pipeline of projects into delivery and continue to grow the pipeline. Thus company aims to have multiple earning streams from three sectors and work together on integrated projects.

[edit] Financial and operational performance

In 2007, the Company has generated net profit of A$ 445.9 which is 26% higher than previous year performance. This has been primarily driven by 103% growth in profit generated through investment management sector of company. The Company has strong and disciplined capital management model where focus is on EPS growth, Debt ratios, Capital returns, Recurring / annuity style earnings and dividend policy. Overall objective is to have strong TSR and good investment credit rating.