Lend Lease is planning to launch a sustainability fund and also convert its UK residential assets into new funds.
At an investor and analyst briefing in Australia, Lend Lease said that a medium-term priority was the launch of a sustainability fund, arguing that greater community awareness of carbon emissions was creating a “paradigm shift” that would provide the company with new areas of growth.
Also planned in the medium term is the creation of residential funds by potentially converting the existing Greenwich Peninsula and Stratford portfolios, as well as the Crosby Homes business it acquired in 2005.
Lend Lease Investment Management global chief operating officer Anthony Pascoe confirmed the company was to launch a UK retail fund to provide a long-term capital partner for its UK retail development business.
“In respect of new funds, the focus is on the UK,” said Pascoe.
“Key existing funds will provide a platform and the funds will leverage off our high-quality retail and residential development pipeline.”
Lend Lease’s retail pipeline includes the £950m Park Place development at Croydon and the £650m Chelmer Waterside at Chelmsford, Essex.
Last week, Lend Lease was said to be planning the launch of a £1.5bn residential fund made up of the 2012 London Olympic Village, which could be spun off as a real estate investment trust.
The site includes 4,500 homes, up to 5m sq ft of offices and almost 400,000 sq ft of leisure.
Lend Lease has a global policy of minimising development risks by selling projects into wholesale funds.
It has already established similar ventures in Australia and Singapore.
The company’s funds have traditionally been anchored in Australia, and these account for 61% of funds under management.
Funds are focused on retail shopping centre assets.
