Fifty-five days after winning control of Babcock & Brown Communities, the newly badged Lend Lease Primelife has announced $185 million in non-cash asset write downs, clearing its balance sheet for the future. They control 56 villages and 29 aged care facilities, the adjustment is not large compared to some operators. It was made up by:
Retirement villages valued down by $50 million
Undeveloped land and ILUs valued down by $70 million
Restructioning costs and other impairments cost $25 million
Interest rate hedges (established by BBC) cost $40 million
The impact is a drop in the Net Asset Backing of $0.20 per share to $0.60. This compares to its share price this week of just $0.12 one fifth of the real value of the company.