SYDNEY--Australian developer Lend Lease Group (LLC.AU) sold the
Bluewater shopping mall on the outskirts of London to Land
Securities PLC (LAND.LN) for GBP696 million (US$1.18 billion).
The deal comes as Lend Lease also looks to restructure or try to
sell some recently built properties in the U.K. and Australia,
which it said haven't met financial performance targets.
Lend Lease forecast a net profit for the year through June of
between 810 million Australian dollars (US$759 million) and A$830
million, after taking into account writedowns on the value of some
of the poorly performing projects, proceeds from the Bluewater
sale, and a higher expected tax rate. In the previous year, the
company reported a net profit of A$552 million.
Around 28 million people shop at Bluewater's three department
stores and over 300 retailing outlets annually, individually
spending more than GBP150 each time. The mall, which opened in
1999, has been on sale since March.
Proceeds from the deal will be used by Lend Lease to cut debt
and support new projects, including some in London, Lend Lease
said.
Write to Ross Kelly at ross.kelly@wsj.com
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