“Strong economic fundamentals continue in Asia. We have recycled capital out of completed developments and continue to pursue new mixed-use or integrated development opportunities in the region. We will continue to invest in higher yielding development opportunities in our key markets of Singapore, Malaysia and Japan.”
Rod Leaver, Chief Executive Officer, Asia
Lend Lease has achieved a strong result in Asia with an Operating Profit After Tax of $112.6 million. During the year we secured two new projects in Asia within the education sector including construction of the new Leadership Development Centre for INSEAD; while we continue to complete Phase 2 of the Stamford American International School in Singapore. In Japan, we have maintained our position as one of the leading foreign contractors in the market with ongoing telecommunication network rollouts across the country.
On 15 June 2013, we were pleased to announce the opening of Jem®, a suburban retail and office property in Singapore. Jem® was fully leased ahead of its first day of trade, housing the first suburban outlets of several international brands, including H&M, Books Kinokuniya and Victoria’s Secret. The commercial component, also fully leased, is due for completion in late 2013. This development received the Gold award in the ‘Best Innovative Green Building’ category at the MIPIM Asia Awards, recognising outstanding developments in the Asia Pacific region for innovative, technical, environmental and architectural qualities. Jem® is also the first mixed-use development to have been awarded Green Mark Platinum Version 4 by the Building and Construction Authority of Singapore, the highest accolade for sustainable buildings.
In June this year, Lend Lease also successfully launched the Lend Lease Jem Partners Fund which was established to acquire Lend Lease’s 25 per cent equity interest in Jem®.
Outlook
We expect the strong economic fundamentals across our key markets in Asia to continue. We will continue to execute the successful delivery of Jem®’s commercial component and capitalise on our integrated capabilities. We will look for additional retail and mixed-use opportunities with joint venture partners or in partnership with our managed funds in key markets including Singapore, Malaysia and Japan.
We will also continue to look for growth opportunities in China. Our project management and construction business will continue to leverage our leadership position in the education, life sciences and telecommunications sectors; and we will look to strengthen our market position in Malaysia and Japan.
