Lendlease to sell 12 communities projects to Stockland, Supalai for $1.3b

The news: Lendlease has agreed to sell 12 Australian communities projects to Stockland Corporation Limited and its capital partner Supalai Australia Holdings for $1.3 billion.

The numbers: The transaction is expected to realise a 20% premium to pre-tax book value and contribute $130 to $160 million to FY24 core operating profit after tax. Four projects, with a combined FY23 book value of $200 million, will remain with Lendlease as they are near completion or "expected to achieve greater future value through additional development activities", the company said.

The context: Lendlease said processes for further capital recycling initiatives remain ongoing, while the construction company's market guidance for FY24 remains unchanged. The group's core operating return on equity is expected at the lower end of the 8-10% range, and the FY24 forecast is geared around the mid-point of the 10-20% target range.

What they said: Lendlease global CEO Tony Lombardo said: "The $1.3 billion sale of 12 master-planned communities provides Lendlease an opportunity to crystalise the value we have created in these projects. We remain focussed on recycling capital to accelerate our Investments-led strategy and to maintain balance sheet flexibility to pursue future opportunities."