Communities report
| Operating Result $m | 08 |
07 |
|---|---|---|
| Operating profit after tax | ||
| Asia Pacific | 82.7 | 90.9 |
| Europe | 21.1 | 51.8 |
| Americas | (3.5) | 0.7 |
| Gross sales value of pre-sales | ||
| Asia Pacific | 589.4 | 366.8 |
| Europe | 41.6 | 371.3 |
- Global Communities’ operating profit after tax declined 30% to $100.3 million, from $143.4 million in 2007. This was primarily due to a reduced contribution from Crosby Lend Lease as a result of the significant slowdown in the UK residential market.
- In light of the difficult market conditions in the UK residential market, Crosby Lend Lease has reduced the carrying value of its inventory by $121.5 million after tax.
- Estimated sales value of Communities backlog reached $33.9 billion, including residential and commercial opportunities, with total residential backlog of 116,925 units and a total commercial backlog of 5.0 million square metres.
- In Asia Pacific Communities, profit after tax was down slightly due to a lower level of commercial sales. There was also a change in product mix, with stronger residential land settlements being offset by a decrease in residential built-form.
- In the UK, conditions for the Communities business remain very challenging. Despite this, we remain well placed with land management deals at Greenwich, Elephant & Castle and Stratford.
- Our Communities business in the US involves two projects in the planning/ approval stages which we will only commence when market conditions recover.
Year in review
| Portfolio Summary | 08 |
07 |
|---|---|---|
| Backlog (residential lots and apartments) | ||
| Asia Pacific | 85,330 | 84,945 |
| Europe | 14,470 | 14,720 |
Americas |
17,125 | 15,881 |
Outlook
- In terms of outlook in Asia Pacific:
- inner city apartments remain strong but are not immune to market conditions;
- in our residential land business, the outer Sydney market remains flat. We have seen strong growth in Melbourne, Queensland and South Australia, however these markets are now slowing; and
- we will continue to look for opportunities in the retirement sector and expect there to be further consolidation.
- In the UK market, conditions remain very challenging. Our UK residential pipeline is sound with key projects such as Elephant & Castle, Greenwich and Stratford each progressing through various stages of the development process.
- In the US, we have a small exposure to the residential market through two projects in Denver.
Key events
Asia Pacific- Residential land settlements increased significantly due to improved trading conditions in Queensland, Victoria and South Australia.
- Securing the rights to acquire 219 hectares of land at Gawler, South Australia, which adds 2,750 lots to unzoned backlog.
- Selection as preferred tenderer to develop 88 hectares of land at Blakeview, South Australia, adding 1,600 lots to unzoned backlog.
- Selection as the preferred proponent to develop the Darling Walk site, a 64,000 square metre commercial project at Darling Harbour, Sydney.
- Entering into a contract with Australian Prime Property Fund Commercial for the development of the new 29,130 square metre office for Myer in the Victoria Harbour precinct, Melbourne.
- Acquisition of Lutanda Manor retirement village at Pennant Hills, Sydney, managed by Retirement by Design.
Europe
- The gross sales value of units settled decreased by $143.0 million, primarily due to the slowdown in the UK housing market.
- In March 2007, Lend Lease was appointed as preferred bidder for the development of Stratford City by the Olympic Delivery Authority (ODA) and London and Continental Railways (LCR). Lend Lease is in negotiations with the ODA and LCR to agree a Regeneration Agreement governing the development arrangements.
- During the year Lend Lease and its partners were selected as preferred development partner for the Elephant & Castle project, a large mixed-use regeneration scheme in London.
Mawson Lakes
Breaks down barriers
Entrance to “The Peninsula”, Mawson Lakes, South Australia
Environmentally sustainable development is one of the key drivers behind the Mawson Lakes project.
This year the Mawson Lakes development project in South Australia marked its 10th birthday by winning one of the industry’s most coveted awards – ‘Best Masterplanned Development’ for its Mawson Central precinct from the Urban Development Institute of Australia. This is the second occasion Mawson Lakes has won this award, with the project in its entirety winning the award in 2004.
Developed by Delfin Lend Lease and the South Australian Land Management Corporation, the 620 hectare site has brought a fresh perspective to urban development characterised by a number of social, economic and environmental sustainability innovations since its inception.
Located 12 kilometres north of Adelaide, more than 30% of the Mawson Lakes site is allocated to public recreational spaces including lakes and waterways and over 26 kilometres of walking and bike trails.
Environmentally sustainable development is one of the key drivers behind the Mawson Lakes project. The community’s recycled water system has established a benchmark in future sustainable urban development and is an Australian first in term of its size and scope.
All homes, businesses and organisations are connected to a recycled water system, in addition to normal drinking water supply. Treated stormwater as treated grey water is recycled for watering gardens, washing cars and toilet flushing. The system aims to reduce the usage of potable water in Mawson Lakes by 50%, compared to the Adelaide average.
Mawson Lakes also features trailblazing affordable housing products, such as the Delfin Studio 51. This product similarly won the Affordable Housing award from the Urban Development Institute of Australia this year.
On completion, Mawson Lakes will house approximately 10,000 people in 4,000 homes.
Greenwich Peninsula
Massive UK urban regeneration project
Greenwich Peninsula
...150 shops and restaurants, 48 acres of parks and green spaces, healthcare facilities, schools and a world-class entertainment complex –
The O2...
In December 2001 Lend Lease and Quintain Estates and Development PLC, in joint venture as Meridian Delta Limited, were selected by English Partnerships as preferred bidder for the urban regeneration of Greenwich Peninsula in London.
With 1.6 miles of river frontage, this 5 billion landmark development of 80 hectares is one of the largest ever in the United Kingdom and will include homes for 25,000 people, jobs for 24,000, 3.5 million square feet of office space, 150 shops and restaurants, 48 acres of parks and green spaces, healthcare facilities, schools and a world-class entertainment complex – The O2, which has won a number of awards since opening in June 2007.
Construction is already under way by a number of leading house builders on a range of residential accommodation in four distinctive new neighbourhoods, including affordable housing being developed by housing associations for key workers and those on low incomes.
The first commercial building, which has been partially pre-let to Transport for London, is being constructed by Bovis Lend Lease at Peninsula Central, a new business district for London.
