Bids in! Stockland battles foreign players for Lendlease Communities
It’s game on for Lendlease’s Australian Communities business, put up for sale via Macquarie Capital in April. First-round bids are in with at least four names throwing their hat in the ring, Street Talk understands.
Sources said Singapore giant Frasers Property and ASX-listed Stockland are gunning for 100 per cent of the business, eyeing meaningful synergies. Heavyweight Thai developer Supalai and Japan’s largest home builder Daiwa House are bidding to come in as capital partners, seeking a 50 per cent stake.
The ASX-listed construction giant is separately running three processes across its retirement and communities projects. Will Willitts
Daiwa is in deep with Lendlease, having teamed up with the construction giant to develop a 45-level build-to-rent tower in Melbourne and isnow seeking its help with global expansion, as reported by The Australian Financial Review on Wednesday.
Bids are understood to be at a premium to Lendlease Communities’ book value, ranging from $1.2 billion to $1.6 billion for the division’s projects (individual properties) and platform (business support, tech, marketing, brand, etc).
Macquarie was tapped earlier this year to find a joint venture partner to take a 50 per cent interest as it looks to release capital.
But, as Street Talk reported in June, all options were on the table, including pivoting to a 100 per cent sale, as the company looks to maximise value.
Naturally, this would be preferable for Lendlease who would be reluctant to enter into a joint venture with a competitor like Stockland.
Sources told Street Talk Lendlease was close to deciding on first-round bids and there’s pressure on them to proceed with the sale, noting strong interest in the cash-positive asset at a time when many
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