BT : Lend Lease wins £1.5b London contract

Business Times - 03 Dec 2009


Lend Lease wins £1.5b London contract

(SYDNEY/MELBOURNE) Australian developer Lend Lease Corp has won a £1.5 billion (S$3.4 billion) contract to redevelop a swathe of London's Southbank, the firm said on Tuesday, sending its share prices sharply higher.

The project is one of Europe's biggest urban regeneration schemes, comprising more than 300,000 square metres of new build, mixed-use development and infrastructure improvements, it added.

Shares of Lend Lease jumped after the announcement, rising more than 6 per cent in early afternoon trade, outperforming the A-Reit index which was down about one per cent.

The scheme has been split into six phases, starting with demolition in February, the firm said.

Lend Lease would masterplan and develop the site, putting money into the project over time but the investment would be small, said Lend Lease spokeswoman Sally Cameron.

'Lend Lease is expected to invest some capital in it but there is no expectation that Lend Lease would fund £1.5 billion,' said Ms Cameron, adding that the income would mainly be generated from construction and development management fees.

Lend Lease also aims to expand its retirement-home business by buying out retirement village operator Lend Lease Primelife. On Tuesday, Lend Lease announced that it had raised its offer to 35 US cents per security from 31 US cents. -- Reuters