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28 December 2001
Lend Lease Global Properties SICAF and Lend Lease Europe Ltd Close Sale of Arrábida Shopping Centre
Stock Exchange Announcement
Lend Lease Global Properties SICAF (“the Global Fund”), Lend Lease’s Luxembourg-based opportunistic investment fund and Lend Lease Europe Ltd (“Lend Lease”) closed the sale of their respective shares in the Arrábida Shopping Centre, Porto, Portugal. The centre was sold to CNP Assurances and Ecureuil Vie (French financial institutions), and Sonae Immobilaria (a major shopping centre owner and manager in Southern Europe) upon attaining the proper EU anti-trade clearance. Lend Lease and the Global Fund purchased the Arrábida Shopping Centre as a 50:50 joint venture investment in June 1999.
The property was sold for €115 million (A$200 million), which will generate a net profit tax after tax for Lend Lease on its 50% stake in the order of GB£ 3.0 million (A$9 million).
Further details are included in the attached media statement.
Media Release
Lend Lease Global Properties SICAF and Lend Lease Europe Ltd Close Sale of Arrábida Shopping Centre
Showcase Portuguese Asset Sold to European Institutions
LUXEMBOURG – Lend Lease Global Properties SICAF (“the Global Fund”), Lend Lease’s Luxembourg-based opportunistic investment fund, and Lend Lease Europe Ltd (“Lend Lease”) have closed the sale of their respective shares in the Arrábida Shopping Centre, Porto, Portugal.
Lend Lease and the Global Fund purchased the Arrábida Shopping Centre as a 50:50 joint venture investment in June 1999. Through the implementation of an active investment management strategy, including the introduction of leading European retailers and rationalising the development potential of the property, both Lend Lease and the Global Fund were able to successfully reposition the asset within the growing institutional real estate capital market.
The price of the centre was agreed at €115 million (£72 million, AU$200 million), with final proceeds subject to audited completion balance sheet. The investment returns for both Lend Lease and the Global Fund is a reflection of the pro-active investment strategy brought to bear on the asset.
The purchasers are CNP Assurances and Ecureuil Vie (French financial institutions), and Sonae Immobiliaria (a major shopping centre owner & manager in Southern Europe).
The sale is consistent with the Global Fund’s investment strategy of transacting on assets to achieve returns through the property cycles. The combination of Lend Lease’s retail business knowledge, expertise and capital, and the capital of the Global Fund have resulted in the successful execution of the investment strategy for both parties.
This sale is the second disposition for the Global Fund, which closed on the sale of Hayes Office Park, a suburban office campus located just four miles from Heathrow Airport in London, to Challenger International Group in November this year.
Jim Quille, Chairman of the Global Fund, also said: “When we acquired this asset we saw increased pan-Eurozone institutional investment, which would result in increased capital flowing to quality assets in the more opportunistic markets of the Eurozone. This transaction fulfils our objectives in that we bought the asset from a local developer/owner, used Lend Lease to improve the asset and are selling it to a joint venture, formed by a French institution and a Portuguese company.”
David Hutton, CEO of Development and Capital Services for Lend Lease Europe, said: “Arrábida Shopping Centre is another example of the synergies created by marrying the investment aims of our real estate investment funds and the real estate skills and capabilities of the Lend Lease Group. Through this combination, we can deliver attractive returns to our investors and shareholders.”
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