Lendlease, which reported an after-tax loss of $99 million in the year to June yesterday, said the operating performance of its Retirement Living business improved after selling a further 25% stake.
Lendlease owns 25.1% of 75 retirement villages under its Retirement Living brand after selling a further 25% of ownership to Aware Super for $490 million in March. Aware Super now owns 49.9% of the Retirement Living division. There have been calls for Lendlease to sell out of owning retirement villages.
Revenue from Lendlease Retirement Living increased to $240 million from $188 million, with profit increasing from $69 million to $159 million. Lendlease’s stake of the profit was $63 million.
The operating returns increased to 5.3% from 4.4% 12 months previously, and its discount rate fell from 12.4% to 12.1%.
The net assets of Retirement Living increased to $2,055 million from $1.99 million. Lendlease’s stake is $516 million.
Its investment in the Retirement Living division is $500 million and Lendlease built a retirement village in Shanghai, China.
