Lendlease to divest Asia life sciences assets
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The news: Property developer Lendlease will sell its life sciences interests in Asia to a newly established 50/50 joint venture with US private equity giant Warburg Pincus.
The numbers: Lendlease valued the deal at $147 million and said the transaction is expected to realise $66 million in net cash proceeds for the company.
The developer also reaffirmed its FY24 guidance of 7% return on equity but said achieving this return remains conditional on execution of a number of transactions.
The context: The transaction will see Lendlease transfer its current life sciences construction and development capabilities in Asia, together with its life sciences investments, to the new JV. It said the JV would provide the company an opportunity to realise the value it has created.
The new real estate JV complements Lendlease’s existing investments platform in Asia, which includes both private funds and the listed Lendlease Global Commercial REIT.
The company has been under pressure from shareholders to boost returns from its sprawling international holdings, including those in Europe and the US. In December, it announced the sale of 12 Australian communities projects to a consortium of Stockland and Supalai Australia for $1.3 billion.
The source: ASX announcement
