ASX Announcement Lend Lease presentation at Macquarie Australia - - PDF document

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ASX Announcement Lend Lease presentation at Macquarie Australia - - PDF document

ASX Announcement Lend Lease presentation at Macquarie Australia Conference in Sydney 8 May 2014 Attached is the presentation given by Lend Lease Chief Executive Officer, Property Australia, Tarun Gupta at todays Macquarie Australia


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ASX Announcement

Lend Lease presentation at Macquarie Australia Conference in Sydney 8 May 2014

Attached is the presentation given by Lend Lease Chief Executive Officer, Property Australia, Tarun Gupta at today’s Macquarie Australia Conference being held in Sydney. ENDS For further information, please contact: Investor Relations: Corporate Affairs: Suzanne Evans Vivienne Bower Head of Investor Relations Group Head of Corporate Affairs and Investor Relations Tel: 02 9236 6464 Tel: 02 9277 2174 Mob: 0448 129 022 Mob: 0431 487 025

Lend Lease Corporation Limited ABN 32 000 226 228 and Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595 Level 4, 30 The Bond Telephone +61 2 9236 6111 30 Hickson Road Facsimile +61 2 9252 2192 Millers Point NSW 2000 www.lendlease.com Australia

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AUSTRALIAN PROPERTY BUSINESS

Tarun Gupta Chief Executive Officer, Property

Disclaimer: Artist impression only, as at May 2014

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This presentation has been prepared in good faith, but no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation (any of which may change without notice). To the maximum extent permitted by law, Lend Lease Corporation Limited, its controlled entities including Lend Lease Trust (together referred to as the ‘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 through use or reliance on anything contained in or omitted from 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. Lend Lease Corporation Limited does not undertake any obligation to provide recipients with further information to update this presentation or to correct any inaccuracies. Prospective financial information has been based on current expectations about future events and is, however, subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described in such prospective financial information. The Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS). This presentation also includes certain non-IFRS measures in presenting the Group’s results. Certain non-IFRS financial measures, have not been subject to audit or review. A reference to 2014 refers to the 2014 financial year unless otherwise stated. All figures are in AUD unless otherwise stated.

Important Notice

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Contents

  • Safety commitment
  • Property Australia portfolio
  • Urban regeneration
  • Barangaroo update
  • Residential – apartments;

communities and retirement

  • Investment Management
  • Delivering on our strategy
  • Q&A

Disclaimer: Artist impression only, as at May 2014

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SLIDE 5

SAFETY COMMITMENT

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Property Australia portfolio

Property Australia Quality diversified portfolio leveraging end to end integrated model

  • 7 projects
  • $17.4 billion

pipeline

  • Mixed use with

large residential apartment unit backlog

  • 28 projects

across five states

  • 57,120 lots
  • Lots

entitled/ production ready

  • 70 villages

across Australia/ NZ

  • 12,705 units
  • Targeting

efficient cost base

  • $10.6 billion

FUM

  • $5.8 billion

retail AUM

  • Strong third

party capital relationships

Supporting Trend Competitive advantage / Track record

Urbanisation Population Growth Ageing Population Funds Growth

Communities Urban Regeneration Retirement Investment Management

 Large project pipeline  Integrated project delivery  Scale  Large land bank and project capability  Scale  Strong operating capability  Scale  Integrated model  Internal asset creation pipeline  Integrated model  Scale

As at December 2013

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SLIDE 7

Urban regeneration - focus on execution

Project End Value1 Progress

Barangaroo South, Sydney

A$6.0 billion

  • 100% pre sales for first residential apartments
  • Construction of first two commercial towers progressing well
  • T1 (third commercial tower) launched

Darling Harbour Live (formerly SICEEP)

A$1.5 billion

  • Financial close reached for $1.1 billion PPP component in December 2013
  • Site demolition well underway
  • PDA financial close anticipated mid 2014 – residential, hotel, student

housing being progressed

Victoria Harbour, Melbourne

A$4.5 billion

  • Strong pre sales for residential apartment project – Concavo
  • 888 Collins Street launch

Batman’s Hill, Victoria

A$1.5 billion

  • Development agreement secured for redevelopment of site adjacent to

Victoria Harbour

  • Planning for C1 (16,413sqm) and C2 (15,036sqm) submitted

Richmond, Melbourne

A$0.4 billion

  • 162 apartments scheduled for completion in 2H14; ~40 apartments in

Stage 1 completed during 1H14

RNA Showgrounds, Brisbane

A$2.5 billion

  • Construction underway on five apartment towers at The Green (356

apartments) and K1 at Kings Gate commercial tower (16,595sqm)

Waterbank, Perth

A$1.0 billion

  • Financial close expected end of calendar year 2014

Total

$17.4 billion

1. Reflects 100% of the project end development value

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Barangaroo – continued progress

Commercial

  • T1 launched – expected to complete FY17
  • Pre-commitments secured: 77% of T2/T3 and

33% of T1

  • Blue chip tenants – PwC, HSBC, KPMG,

Westpac, Lend Lease, Gilbert & Tobin

  • Well progressed with construction of first two

towers Residential

  • Anadara and Alexander 100% presold –

completion and settlement in FY16 Retail

  • Stage 1A – circa 80 tenancies, including 50 food

and beverage tenancies Hotel

  • Exclusivity agreement with Crown

Capital partners

  • Introduced new international capital partner

APG to the precinct in May 2014

Commercial Tower 1

  • Large adaptable floor

plates – on average 2,300 sqm

  • Vertical villages

located in the mid and high rises with the flexibility for vertical connections

  • Panoramic views to

Harbour Bridge

  • 101,000 sqm

commercial space – largest premium

  • ffice building in

Australia

  • 6 Star Green Star

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Residential – apartments

Strong market fundamentals

  • Low interest rates, strong demand from
  • ffshore and investors and trend to inner city

living Significant growth in backlog to 9,300 units

  • Circa 55% of urban regeneration project

revenue is apartment product 1

  • Sales volumes increasing from circa 300 units

p.a. to circa 1,000 units p.a. going forward

  • Progressing delivery of circa 30 apartment

buildings2 over coming years

  • Well positioned to support demographic shift to

inner city living

  • 1. As at 31 December 2013
  • 2. Subject to planning approvals

Projects Under Construction Pre- sold FY14 FY15 FY16

  • Barangaroo Stage 1

2 towers (159 units)

  • RNA The Green

5 towers (356 units)

  • Victoria Harbour

Concavo (238 units)

  • Studio Nine

Richmond Stage 1 (203 units) 100% 85% 91% 89%

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QLD 58% ACT & NSW 17% VIC 17% SA 5% WA 3%

Residential - Communities

Alkimos, WA

WA 12%

Strong market fundamentals

  • Low interest rates, strong population

growth and favourable affordability 28 projects, all with approved residential zoning

  • Strong sales across most markets – NSW,

WA and QLD strong performers

  • Volumes continued to strengthen

Backlog by geography

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Residential - Retirement

Solid market fundamentals

  • Residential market cyclical upswing,

improving residential valuations and sustained demographic shift Significant operational efficiencies from scale portfolio

  • Annual cost per unit across the portfolio

has reduced significantly since acquisition in 2010

  • Continue to target further expense

synergies across the portfolio

Woodlands Park, VIC

WA 12%

Units by geography

QLD 32% ACT & NSW 20% VIC 26% NZ 8% WA 11% SA 3%

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Investment Management

Lakeside Joondalup, WA Darling Quarter, NSW Craigieburn Central, VIC

Strong capital markets and scarcity of assets

  • Growth in funds under management (FUM) to

$10.6 billion

  • ~16% p.a. average growth in FUM over past 5 years1
  • ~90 institutional investors in the Australian platform

(~65 domestic and ~25 offshore) 9 major Lend Lease projects financed by third party capital in the last 5 years including:

  • Darling Quarter, Caneland Central, International

Towers 2 & 3 Sydney Retail assets under management of $5.8 billion

  • 1. Excludes Primelife investment which was consolidated from 2010

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Delivering on our strategy

Lead

2009 2016

Urban regeneration: $6.0 billion Apartments: 3,980 Communities: Zoned 20,830 Unzoned 47,390 Total 68,220 Retirement living1: 12,200 FUM2: $5.6 billion $17.4 billion 9,300 backlog 57,120

  • 57,120 backlog

12,705 units $10.6 billion

 Favourable market, social and demographic trends benefitting the Property business  Quality diversified portfolio  Development backlog secured in right point in the cycle  Delivering on disciplined execution – cash realisation underpinned with significant pre sales  Sector leadership positions From 2009 1H14

  • 1. Retirement living units includes owned and managed units
  • 2. Excludes Primelife investment which was consolidated from 2010

RESTORE BUILD LEAD

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SLIDE 14

Q&A

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Disclaimer: Artist impression only, as at May 2014