The country’s largest retirement village operator sold 939 existing village homes over the 12 months, out of 12,500 homes across 71 villages, and achieved an 11% increase in average price over FY16.
At the same time it sold 176 new homes at an average price of $460,000.
All up they have a land bank capacity to build a further 4,820 units, making the attraction of a capital partner all the more attractive. With a 20% development profit they would need $1.8 billion to build out those sites.
Retirement, at a valuation $1.7 billion, already accounts for 50% of Lendlease’s total investments ($3.3 billion).
Group CEO Steve McCann says they are actively seeking to transfer their retirement skills offshore. Lendlease has a strategy of focusing on ‘Gateway cities’, being affluent growth metropolises.
“Today Lendlease operates in 17 gateway cities and a number of satellite cities around the world. These cities typically experience higher population and economic growth relative to the national average, they're more resilient through property and economic cycles, they attract more global investment capital and they have the most appealing employment prospects”.
They moved their ‘discount rate’ from 13.3% to 13.0% over the last 12 months.
