Lendlease Group · ASX:LLC
Lendlease — Investor Day (October 2009)
58 slides from Lendlease's investor day presentation, Oct 20, 2009
Slide 1: Lend Lease Melbourne Investor Day – Presentations
20 October 2009 For personal use only The Manager The Manager Companies Section Companies Section ASX Limited New Zealand Exchange Limited Pages: Fifty eight (58) pages Lend Lease Melbourne Investor Day – Presentations Attached are copies of the presentations to be made at the Lend Lease Investor Da
Slide 2: Overview – Brad Soller, Chief Financial Officer
For personal use only Lend Lease Melbourne Investor Day - 20 October 2009 Overview Brad Soller Chief Financial Officer
Slide 3: Agenda
Agenda For personal use only 8.45am The Gauge - Welcome Brad Soller - Chief Financial Officer David Hutton - Global Head of Development Tony Costantino - CEO Bovis Lend Lease Australia Maria Atkinson - Head of Sustainability Paul Yousseph - Project Director, ANZ Lend Lease Toni Blume - H
Slide 4: Corporate Action since June 2009
Corporate Action since 30 June 2009 For personal use only Lend Lease proposal to staple a trust to LLC There is no change to Lend Lease’s strategy or business model Lend Lease has no ambitions to become a REIT The stapled structure will provide flexibility in how Lend Lease holds future pass
Slide 5: Project Wins since June 2009
Project Wins since 30 June 2009 For personal use only Project wins since year end A$250 million Catholic Schools Education contract for Bovis Lend Lease Acquisition of retirement/ aged care assets from PTN for A$76 million Reaching financial close on US$125 million Phase A of PAL program L
Slide 6: David Hutton, COO Asia Pacific
For personal use only Lend Lease Melbourne Investor Day - 20 October 2009 David Hutton COO Asia Pacific
Slide 7: Content
Content For personal use only Victoria Harbour Project Development/ Asset Management in Lend Lease Asia Pacific Key Sectors Sector Trends & Sales update Lend Lease Melbourne Investor Competitive Positioning Day Commercial Approach 6
Slide 8: Victoria Harbour: Overview and History
Victoria Harbour: Overview and History For personal use only Victoria Harbour is a 30 hectare parcel in the centre of the Docklands precinct surrounded by 2.5km of water frontage Considered the ‘jewel in the crown’ of Docklands, the 20 year Development Agreement includes 350,000m2 commercial; 22
Slide 9: Victoria Harbour: Projects as at October 2009
Victoria Harbour: Projects as at October 2009 For personal use only The Gauge Ericsson House nab @ Docklands The Mosaic The Montage Dock 5 Myer The Merchant ANZ 833 Bourke Street Merchant Street Retail Children’s Hub Note: Future development site uses may change. 8
Slide 10: Victoria Harbour: Committed & Completed Projects – Commercial
Victoria Harbour: Committed & Completed Projects For personal use only Commercial Projects Indicative Completion GFA Value The Gauge NAB 70,200 sqm $310m Ericsson 26,325 sqm $95m The Gauge 10,590 sqm $58m LUCRF 3,107 sqm $15m ANZ Myer 34,247 sqm $180m ANZ 102,758 sqm $750m* 247,227 sqm c
Slide 11: Victoria Harbour: Committed & Completed Projects – Residential
Victoria Harbour: Committed & Completed Projects For personal use only Residential Projects Approximate Completion Units Value Dock 5 148 units $158m Mosaic 71 units $50m Montage 84 units $60m Convesso (artists impression) Merchant 133 units $58m Convesso 220 units $260m 656 units $586m Re
Slide 12: LL APAC Development/Asset Portfolio
LL APAC Development/Asset Portfolio For personal use only Master planned communities in major growth corridors, Australia wide Apartments in Sydney & Melbourne Commercial & mixed use in prime CBD positions Retail regional centres – development/ management Retirement & Aged Care Australia wide * Loca
Slide 13: Market Outlook
Market Outlook For personal use only Home Loan Affordability Proportion of Monthly Income as repayment % 45 Sydney Melbourne 40 Brisbane Adelaide Perth 35 30 25 20 15 10 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 f as at June •Affordability in Melbourne at its best level since 1999
Slide 14: Delfin Lend Lease Trading Update
Delfin Lend Lease Trading Update For personal use only Residential Sales Sales YTD (Sept 09) Sales 983 Victoria 337 Queensland 152 NSW/ACT 399 South Australia 95 July, August and Sept sales have continued recent improvement and reflect 2007 historic sales momentum. Enquiry strong in all markets.
Slide 15: Delfin Lend Lease Residential Market Trends
Delfin Lend Lease Residential Market Trends For personal use only Melbourne Remains strong. Positive outlook based on stock SEQ deficiency and affordability. DLL looking to invest Rebounded recently with strong sales further in this market. momentum. Fundamentals remain strong. DLL well positioned i
Slide 16: Apartment Trends
Apartment Trends For personal use only Sydney “set to recover” Apartment approvals are currently (in trend terms) at 30% of the level they were at the start of 2004 Chronic undersupply of accommodation action in NSW and unless there is an increase in supply (which looks as though it will be insu
Slide 17: Commercial Office Outlook
Commercial Office Outlook For personal use only Perth The correction in Perth rents will continue for Growth Downturn the next three years due to the elevated Singapore vacancy rate. There is a large development Prime gross effective rents will start to pipeline that will cause further increase in 2
Slide 18: Competitive Positioning
Competitive Positioning For personal use only 9Dominate in chosen sectors 9Market knowledge NAB 9Brand Lakeside, Pakenham 9Integrated capability 9Backlog / diversification Jacksons’ Landing 9Capital Model Macarthur Shopping Centre 9Partnering The Terraces, Queensland 17
Slide 19: Bovis Lend Lease – Tony Costantino, CEO
For personal use only Lend Lease Melbourne Investor Day - 20 October 2009 Bovis Lend Lease Tony Costantino CEO
Slide 20: Strategy Overview
Strategy Overview For personal use only Sectors Balance of strong portfolios of work in different markets No.1 or 2 in each sector Balanced GPM types and risk profiles Lend Lease integrated model Fee vs Risk Internal vs External Stable workforce 30% 20% Maintain focus on operational exce
Slide 21: Market Outlook
Market Outlook For personal use only Government and Infrastructure spend continues Health Education Universities Water Private/ institutional clients The new Royal Children’s Hospital Confidence has returned Yet to be translated into projects Maintaining market share in a smaller m
Slide 22: Competitive Landscape
Competitive Landscape For personal use only 2008/09 HIA Reed Construction 100 report rankings: Number 1 Commercial and Community (including Health) Number 2 overall Competitors vary by sector Increased focus on alliances for large capital projects eg Hospitals and infrastructure Market
Slide 23: Trading Performance Update
Trading Performance Update For personal use only Backlog GPM by Sector FY09 Backlog GPM by region FY09 22
Slide 24: Recent Industry Recognition
Recent Industry Recognition For personal use only The Gauge, Victoria Harbour Master Builders Association, Victoria Best Sustainable Award and Health and Safety Sustainable Architecture Award at The Royal Australian Institute of Architects (AIA) Vic Melbourne Recital Hall and Melbourne Theatre C
Slide 25: Current Project Pipeline in Victoria
Current Project Pipeline in Victoria For personal use only ANZ Centre - just completed Current projects The new Royal Children’s Hospital Myer Telstra office fitouts Telstra land and buildings The Merchant 500 Bourke Street Pipeline ANZ Centre Preferred tenderer on Melbourne Wholesale
Slide 26: Plan for Growth/Outlook
Plan for Growth/Outlook For personal use only Ongoing commitment to Government/PPPs Infrastructure e.g. water Health Education – schools and universities Lend Lease integrated projects Victoria Harbour Residential The Merchant Institutional investment opportunities Diversifying Mul
Slide 27: Maria Atkinson, Global Head of Sustainability
For personal use only Lend Lease Melbourne Investor Day - 20 October 2009 Maria Atkinson Global Head of Sustainability
Slide 28: Presentation
Presentation For personal use only Strategy to be a sustainable leader Progress to date Leadership Activities Lend Lease Melbourne Investor Green Buildings Sustainable Precincts Day Carbon Reporting and Climate Positive Developments Business Opportunities 27
Slide 29: Sustainable Buildings & Climate Initiative
For personal use only Sustainable Buildings & Climate Initiative
Slide 30: Green Building
For personal use only Green Building 29
Slide 31: The Gauge Environmental Initiatives
THE GAUGE > ENVIRONMENTAL INITIATIVES Lend Lease COGENERATION (ELECTRICITY + HEAT) Electricity generated on site via natural gas turbines, heating generated as NATURAL ff” GAS TURBINE [ HEAT RECOVERY Heat extracted from exhaust air to preheat fresh air supply in winter months ij a by-product NARROW
Slide 32: From Buildings to Precincts
From Buildings to Precincts For personal use only Future – the opportunity Sustainable Lifestyle Tomorrow Sustainable Precincts To date Sustainable Buildings 31
Slide 33: Climate Positive Development Program
CLIMATE" Climate Positive Development Program Sees C L| NTO N In partnership with the CLIMATE U.S. Green Building Council INITIATIVE
Slide 34: Founding Projects in Countries
16 Founding Projects in 10 Countries For personal use only +++ DOCKSIDE GREEN ELEPHANT & CASTLE STOCKHOLM ROYAL SEAPORT + + TORONTO WATERFRONT ALBERT BASIN MAGOK URBAN + + LOWER DON LANDS DEVELOPMENT PROJECT TREASURE ISLAND REDEVELOPMENT PROJECT DESTINY FLORIDA + + MAHINDRA WORLD CITY JAIPUR + GODRE
Slide 35: ANZ Centre – Paul Yousseph
For personal use only Lend Lease Melbourne Investor Day - 20 October 2009 ANZ Centre Paul Yousseph Project Director
Slide 36: Project Overview
Project Overview For personal use only ANZ ‘s new Global Headquarters Australia’s largest single tenanted office building Location: Victoria Harbour, Melbourne Project Size: 83,500sqm net lettable area 135,000sqm built area 6,500 occupants 1,900sqm Retail Commencement Date: October 200
Slide 37: The Project Team
The Project Team For personal use only Owner / Occupier ANZ Development Lend Lease Management Development Project Management Lend Lease Integrated Bovis Lend Lease Design & Construction Property Solution Architectural design Lend Lease design Sustainable design 36
Slide 38: Our Approach
Our Approach For personal use only Sustainable Solutions Ability to influence outcomes Integrated approach Wealth of knowledge and expertise 37
Slide 39: Our Value Proposition
Our Value Proposition For personal use only Value Proposition Value to Client Inherent knowledge of Focus on optimising owners’ commercial industry and tenants end outcome Early capping of Owner / tenant outcome Development, Design and certainty Construction risk Upfront , in house services Streamli
Slide 40: Myer, Melbourne – Toni Blume
Lend Lease Melbourne Investor Day - 20 October 2009 For personal use only Myer, Melbourne Toni Blume Head of Design & Project Management, Commercial Bovis Lend Lease
Slide 41: Project Overview
Project Overview For personal use only Lend Lease integrated team: Building Owner APPF Commercial Developer/Development Management Lend Lease Development Design, Project Management & Construction Bovis Lend Lease including Lend Lease design Project : National Support Office for Myer Australia –
Slide 42: Project Offer
Project Offer For personal use only New commercial office with integrated tenant fitout 10 year lease with 5 year option 28,850sqm Commercial lettable area Large floorplates 2,900sqm NLA 880sqm Retail area 310 car and 100 bike spaces above ground over three carpark levels Achieved 5 st
Slide 43: Our Service
Our Service For personal use only End to end role including: Master planning Development feasibility Total development packaging Lease negotiations Development management Design and construction management Value management role using in-house specialists Fast tracked response and dec
Slide 44: Our Competitive Advantage
Our Competitive Advantage For personal use only Victoria Harbour masterplan with a variety of commercial office sites to tailor buildings to commercial tenant needs Lend Lease integrated model provides a total packaged property solution at a competitive price Strong national relationship with
Slide 45: Edgewater – Jill Lim
For personal use only Lend Lease Melbourne Investor Day - 20 October 2009 Edgewater Jill Lim Project Director
Slide 46: Edgewater overview
Edgewater overview For personal use only Location 7km west of CBD Size 95 hectares / 1,100 homes Time frame 2001 – 2012 Value $292 million History Former munitions site purchased from ComLand Features Approx. half the project is open space 1.5 km Maribyrnong River frontage 7 hectar
Slide 47: Edgewater trading history
Edgewater trading history For personal use only 598 land lots (sold out FY09) 500+ apartments/high density residential in planning/under construction Development by type 29.9 hectares residential land Commercial land 4% High density land 11% 3.75 hectares commercial land Residential land 34%
Slide 48: Edgewater trading history
Edgewater trading history For personal use only Highest residential land sale Skyline Drv 334 sqm - $650,000 (June 2007) Highest residential built form sale Infinity 198 sqm - $930,000 (October 2009) Highest commercial land sale Site 7C off Gordon Street – 1.82 hectare - $9.5 million (in
Slide 49: Edgewater current trading
Edgewater current trading For personal use only The Outlook - built form project 60 - 80 dwellings per hectare 119 built form homes 8 different built form products 32 sold to date (K, 1, 2 & 3) Price range from $460,000 - $1.2m Floor plans range from 126 sqm – 375 sqm 1 apartment sit
Slide 50: Edgewater competitive landscape
Edgewater competitive landscape For personal use only Essence Ascot Chase Banbury Callaway Park Village Developer Stocklands Urbex Cedar Woods Australand Properties Ltd Location Maribyrnong Ascot Vale Footscray Sunshine West Product Total lots 123 200+ 380 250 Price range $390k - $580k $550k - $950k
Slide 51: Edgewater price growth - Land
Edgewater price growth - Land For personal use only $600,000 Average sale price $500,000 $400,000 $300,000 $200,000 $100,000 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 $1,800 Average/sqm price $1,600 $1,400 $1,200 $1,000 $800 $600 $400 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 50
Slide 52: The new Royal Childrens' Hospital Project
For personal use only Lend Lease Melbourne Investor Day - 20 October 2009 The new Royal Childrens’ Hospital Project David O’Shaughnessy Project Director
Slide 53: Project Introduction
Project Introduction For personal use only Healthcare provides an opportunity for Bovis Lend Lease to capitalise on large government infrastructure spend in a changing market environment Introduction in Australian market to PPPs, building on the Bovis PPP business in the UK Large scale, comple
Slide 54: Project Overview
Project Overview For personal use only Public Private Partnership project under the “Partnership Victoria” delivery model – 25 year concession term Consortium Sponsor: Amber Infrastructure (old Babcock and Brown) Design and Construction Provider: Bovis Lend Lease Hard Facilities Management
Slide 55: Project Attributes
Project Attributes For personal use only Size of final site is less than 4.1ha. Additional patient capacity is 35,000 patients per annum Total beds – 353 with 85% of single beds and 80% with views to parkland 2,165 car spaces, 500 bike spaces Non core offering – 98 room hotel, gymnasium, s
Slide 56: Project Status
Project Status For personal use only Program: On program to deliver to contracted timeframes Design: Have completed all user groups Final design submission (design stage 3) made to 92% of first stage of the project State have endorsed 75% of the design Construction: Structure due to top off in Novem
Slide 57: Questions?
For personal use only Questions? 56
Slide 58: Lend Lease Melbourne Investor Day - October 2009
For personal use only Lend Lease Melbourne Investor Day - 20 October 2009