Victoria Harbour sales momentum assists Lendlease profit

Lendlease delivered profit after tax for the half year ended 31 December 2015 of $353.8 million, versus the prior corresponding period profit after tax of $315.6 million, up 12 percent.

“Significant momentum has driven first half of 2016, with increasing cash generation and a positive growth outlook,” CEO and managing director, Steve McCann said.

The highlights were signalled as:

Estimated development pipeline end value of $46.6 billion, up 15 percent

Residential pre sales revenue of $5.4 billion, up 49 percent

Residential settlements of 2,128 up 45 percent

Construction backlog revenue of $18.6 billion, up 19 percent, with a further $6.1 billion of construction new work secured, up 30 percent

Funds under management of $22.0 billion, up 26 percent, including $1.2 billion of third party capital

“We remain on a strong growth trajectory, with greater visibility to earnings and cash over the coming years,” he said.

“Our development pipeline has grown to $46.6 billion, with approximately 75 percent represented by urbanisation related projects. During the half we had strong sales momentum at residential projects at Victoria Harbour in Melbourne and Elephant & Castle in London and we secured planning approvals for a new urban regeneration project in Chicago,” he said.

Residential pre sales reached a record $5.4 billion, up 49 percent and residential settlements rose 45 percent to 2,1285 .

“In the last six months we have settled over 650 apartments, with non-settlement at less than 1 percent versus our historic average of less than 3 percent.

"We maintain a disciplined approach to delivery risk and pre sales.”

Lendlease today announced the appointment of David Craig to its board.

Mr Craig is the Chief Financial Officer (CFO) of Commonwealth Bank of Australia, and has also served as a Non Executive Director of The Australian Gas Light Company Limited (AGL) and Colonial Mutual Life Assurance Limited.