This article is from the Australian Property Journal archive
LENDLEASE is selling its life sciences interest in Asia as part of a new 50/50 joint venture Warburg Pincus, establishing a new specialist real estate platform in the sector.
The $147 million transaction will transfer Lendlease’s current life sciences construction and development capabilities in Asia, alongside its life sciences investments, into the new JV.
Lendlease expects to realise approximately $66 million in net cash proceeds, subject to certain completion adjustments and conditions precedent.
“This is another example of how we’re realising value from our existing operations, while further simplifying Lendlease to create a more focussed company for securityholders,” said Tony Lombardo, global CEO at Lendlease.
“With the combination of Lendlease’s 30 year track record in the Asia Pacific supporting the world’s largest pharmaceutical and life sciences companies and Warburg Pincus’s experience and track record in investing and scaling platforms, the joint venture is well-positioned to become the leading integrated life sciences real estate business in the region, offering compelling new investment opportunities to our investors.”
The new real estate platform focussed on the expanding life sciences sector in Asia Pacific, will complements Lendlease’s existing Investments platform in Asia, including the private funds and the listed Lendlease Global Commercial REIT.
Lendlease has reaffirmed its FY24 guidance of 7% return on equity, pending the execution of a number of transactions. This includes this transaction and the sale of 12 Communities projects.
The company has recently faced criticism from a number key shareholders after a string of soft results and returns, and a downgrade to this year’s full-year result.
