Lendlease sells 70 percent of Sydney's Residences One and Two apartments

Lendlease has major urbanisation projects across 10 global capitals, including Sydney, Melbourne, London, Milan and New York
Lendlease sells 70 percent of Sydney's Residences One and Two apartments
A render of One Sydney Harbour. Image supplied
Jonathan ChancellorAugust 16, 2021
Lendlease has strengthened its role as an international residential developer adding $8.4 billion in projects to its development pipeline. It has a total of 49 development projects, comprising a total of 32 urbanisation projects and 17 communities projects. Their development segment is predominantly focused on the creation of mixed use precincts that comprise apartments, workplaces and associated leisure and entertainment amenity. The group also develops outer suburban masterplanned communities and retirement living villages, which saw its Australian communities settlements at 2,228 lots, up 17% and sales at 1,940 lots, up 44%. Its communities include 27,800 land lots in Queensland at Elliot Springs, Springfield Lakes, Yarrabilba and Shoreline. It is 6,470 in New South Wales at Calderwood Valley, Figtree Hill, Jordan Springs and The New Rouse Hill. There are 7,500 land lots in Victoria at Atherstone, Aurora, Harpley and Averley. Despite local sales success, its global chief executive officer, Tony Lombardo noted its presence in targeted global gateway cities had seen the pandemic have a significant impact across most markets and operating segments. "Despite COVID impacts, profit recovered and the group made significant strategic progress,” he told shareholders. The development segment experienced production delays, with ongoing impacts on leasing and sales across active projects. Notwithstanding COVID impacts, several key initiatives were progressed including an investment partner being secured for the first two residential towers at One Sydney Harbour. Construction activity was constrained by delays in the commencement of new projects, site shutdowns and lower productivity. The impact of social distancing protocols across our sites was reflected in a 16% decline in revenue compared with a 9% decline in hours worked. The annual report noted urbanisation projects underway with an end value of $7.4 billion. The company that has set itself an annual target of $8 billion plus worth of production has a work-in-progress pipeline worth $14.5 billion, $7 billion of which are build-to-rent apartment projects as well as master-planned community products. The company currently has 22 major urbanisation projects across 10 global capitals, including London, Milan and New York. The projects include Sydney Place, Victoria Cross and Barangaroo South in Sydney, Melbourne Quarter and Victoria Harbour in Melbourne, Brisbane Showgrounds and Waterbank in Perth. Work in progress include Residences Two; One Sydney Harbour, Melbourne Quarter Tower; 100 Claremont, New York, TRX Residences & Hotel/Office, The Exchange TRX, Kuala Lumpur; Park & Sayer, Elephant Park, London and Ardor Gardens, Shanghai. The composition of work in progress includes apartments for sale $5.9 billion and apartments for rent $1.3 billion. It advised it has sold 70 percent of the 637 apartments in Sydney's Residences One and Residences Two. Residences Two is set for completion in early 2024 and the overall project of three luxury towers expected to complete by 2025, coinciding with the completion of Sydney Metro and its dedicated station at Barangaroo. Its Residences Two joint venture is with Mitsubishi Estate, which also holds a 25 per cent interest in Residences One at One Sydney Harbour and a 30 per cent interest in Sydney Place. The company also struck up investment partnerships worth $5.1 billion were formed across five upcoming projects. It has $28.5 billion in assets under management: residential $13.7bn: retail $11.8bn and office $3bn.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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