In a joint venture with one of its major global investment partners, Lend Lease Group (ASX:LLC) was the highest bidder for the Paya Lebar Central site in Singapore. In an announcement to the ASX, the company said it would own 30 per cent of the large scale mixed use urban regeneration development site. The company bid $1.6bn for the Government Land Sales programme site. The site has a capacity of around 165,000sqm of development including office, retail and residential apartment use. There will also be a direct connection with the Paya Lebar Mass Rapid Transit (MRT) Interchange that connects to both the Circle and East-West lines. As per the terms of the Government Land Sales programme, the site will be on a 99-year lease agreement.
The award of this site will be subject to tender acceptance by the Urban Redevelopment Authority. The development will be funded by a combination of non-resource, project level debt and equity. “This is a great opportunity for continued success in the region, leveraging Lend Lease’s global capabilities to develop large scale urban regeneration projects in major cities around the world,” said Lend Lease CEO and Managing Director Steve McCann. “It further cements Lend Lease’s position in the Singapore market and leverages its leading integrated property capabilities encompassing development, construction, investment management and asset and property management platforms.” Overall profit for the company increased 25 per cent to $315.6m in the last half of 2014. Although there was strong growth in the Australian and UK markets, this growth was mostly offset by a decline in the US and Asia markets. LLC is up 33c, or 1.98 per cent, at $17.02 around 12:45pm on Thursday. LLC has advanced 39.54 per cent in the last 12 months.