Lend Lease lands two whoppers offshore Florence Chong | July 09, 2008 LEND Lease has finalised financial arrangements for two overseas projects, worth $550 million.
Its US business, Actus Lend Lease, has signed off on a $US400 million ($419 million) military housing project.
The agreement is for the first five years of the program, which has another 45 years to run at an estimated cost of $US2.4 billion.
Lend Lease chief executive officer Greg Clarke has said Actus Lend Lease is now the biggest player in this segment of the US market, with about 25 per cent of the market.
Under the Privatisation of Army Lodging program, Actus Lend Lease will build or renovate rooms on 12 US Army installations around the country.
The project will be undertaken with InterContinental Hotels Group.
Actus Lend Lease, with 10 operational installations in the US worth about $US5.8 billion in development value, has been chosen as the preferred bidder on two more projects with a combined initial development budget of more than $US800 million.
Meanwhile, a Catalyst Lend Lease consortium, including Bovis Lend Lease, has finalised financial negotiation for a pound stg. 63 million ($130 million) contract for a school program in Britain.
Under the Private Finance Initiative (PFI) project, the consortium will build a new generation of secondary schools for Lancashire County Council.
Lend Lease has successfully mined a rich pipeline of public-private partnership projects in Britain, the US and Australia.
Mr Clarke said debt finance was used to fund these public-private partnership projects and they all offered good returns with low risks. He expected this arm of Lend Lease's businesses to continue to generate solid growth.
Lend Lease shares traded down 5c to close at $9.55.
LLC Price at posting:
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