Lendlease has sold a further 21% interest in its US Military Housing asset management business to Guggenheim Investments for A$126m (€77m).
Guggenheim, on behalf of its client accounts, will have a 62% of interest in the US Military Housing asset.
Lendlease will retain 38% of the income stream that is generated from managing its Military Housing assets as well as its existing ownership of the development, property and construction management rights, in addition to about a A$200m equity interest in the portfolio.
The company said the sale was expected to contribute about A$75m to core operating profit after tax for the current financial year.
Lendlease’s global CEO and managing director, Tony Lombardo, said: “This transaction demonstrates our ability to realise value from our portfolio for redeployment into higher growth opportunities, consistent with the execution of our strategy and ongoing capital management focus.”
Lombardo said that, because of the US Military Housing transaction, the financial year 22/23 return on Lendlease invested capital for the investments segment was now expected to be towards the high end of the 6.0-7.5% range. Lendlease had previously guided towards the lower end of the range.
In the US, Lendlease’s Communities business is one of the nation’s leaders in public/private community development. Lendlease manages one of the largest military housing portfolios in the US and is the Army’s exclusive partner for lodging.
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