Lendlease has sold its US military housing business to Omaha Beach Investment, an entity managed by Guggenheim Partners Investment Management, for A$480m (€298m).
The sale includes the operating platform of the business along with the associated management rights for asset, property, development and construction management.
Guggenheim Investments is a business partner of Lendlease. Almost two years ago, Lendlease formed a financial partnership with Guggenheim which was acting on behalf of its clients, to acquire a portion of Lendlease’s asset management business of the group’s US military portfolio.
Lendlease manages some of the largest military housing portfolios in the US and it is the US Army’s exclusive partner for lodging. The US military housing portfolio consists of more than 40,000 residential units, 192 apartments and more than 12,000 hotel rooms.
The company said the transaction built on the “significant” progress it had already made executing its strategy to re-focus on its Australian operations and international investment management capabilities, while recycling more than $4.5bn of capital.
The group said transactions announced to date were expected to generate A$275m to A$335m in operating profit before tax in the 2025 financial year. Together with contracted settlements, these are expected to deliver cash receipts of A$1.8bn in the first half of the 2025 financial year with a further A$400m early in the second half.
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