Special Feature

Lendlease powers investment engine to fuel growth in Asia business

By Lendlease

/ Brought to you by Lendlease |

November 12, 2023 6:00 AM SGT

Commemorating its 50th anniversary in Singapore, Lendlease rolled out its first locally produced TVC, reflecting its pivotal role in shaping Singapore’s skyline

Over the last 50 years, the globally integrated real estate group Lendlease has been a key partner in Singapore’s development, successfully delivering over 400 local projects, including manufacturing hubs, life sciences facilities and educational institutions. Its journey has left an indelible mark on Singapore’s skyline, with iconic projects like Paya Lebar Quarter, 313@somerset and Jem. In its 50th year milestone in Singapore, Lendlease is striding forward with an evolved investment-led stretegy, reinforcing its placemaking capabilities and competitive edge.

As Lendlease’s largest footprint in Asia, Singapore remains an important market for Lendlease, housing its group funds, key investment expertise, and regional headquarters for over 500 employees. Justin Gabbani, CEO Asia at Lendlease, says: “We’re privileged to have contributed towards Singapore’s growth as a regional economic hub over 50 years. I’m excited for us to continue bringing our integrated expertise across investment, development and construction to create places that thrive.”

Its investment arm invests and manages on behalf of institutional investors, and provides access to top-tier property assets with diverse risk profiles. Its end-to-end development expertise covers land acquisition, local authority consulting and project management, especially in urbanisation projects. Lendlease also excels in pre-construction, construction execution and management services, leveraging a deep understanding of local markets and the integrated property value chain.

Lendlease developed Paya Lebar Quarter, a $3.7 billion project that was completed in 4.5 years, one of its fastest developments of such a scale globally

Embracing an investment-led approach

As Asia’s property market growth is set to outpace the US and Europe, opportunities abound across Asian markets that long-term investors can tap into. As an integrated real estate developer with track record and market knowledge, Lendlease is poised with the capabilities to provide investors with access to global projects, assets and funds.

“We are shifting towards an investment-led business model, which means we are bringing investors into our assets and projects, accelerating our funds and assets under management. This is something we have been doing and will increasingly leverage going forward,” says Gabbani.

Lendlease Singapore is no stranger to this approach. All its retail assets – 313@somerset, Jem, Parkway Parade and Paya Lebar Quarter – are managed via wholesale investment vehicles, through which it invests on behalf of pension funds, sovereign wealth funds, investment managers and insurance companies.

Designed, constructed and managed by Lendlease, 313@somerset is located at the very heart of the busiest district in Singapore

On the institutional investment front, the group has positioned itself as a powerful player in Asia by committing substantial capital and resources in Singapore, Malaysia, China and Japan. These portfolios encompass iconic retail and commercial assets such as The Exchange TRX in Malaysia, Lendlease’s largest integrated development in Asia.

In recent years, Lendlease Asia originated the Lendlease Data Centre Partners and Lendlease Innovation Limited Partnership, allowing institutional investors to globally tap opportunities in data centres and life sciences, sectors in which Lendlease has strong footholds. In Shanghai, Lendlease holds 100% stake in its flagship senior living community development Ardor Gardens and is looking for investment partners, which would enable the real estate developer to recycle the capital invested.

“Our investment-led strategy builds on our existing integrated development and construction capabilities, which continue to support the growth of our business, through generating new pipeline that supports our funds under management growth,” adds Gabbani.

With this evolved approach, Lendlease will focus on growing its funds under management (FUM) to generate recurring income, through organic or inorganic growth, collaborating with capital partners, development and construction teams to create essential civic and social infrastructure. This strategy has seen a rise in investments in Asian assets and projects over the past few years.

“The sustainability credentials and outcomes of our investments and projects globally are a competitive differentiator that position us as a partner of choice to generate long-term value for our stakeholders,” shares Gabbani.

Being entrusted with the redevelopment of the iconic Shaw Tower (with Shaw Towers Realty as client) along the Ophir-Rochor Corridor and of Singtel Comcentre (of which Lendlease is a joint-venture partner) into a $3 billion next-generation landmark development, is testament to its partners’ trust in Lendlease’s capabilities.

Pursuing collaborations in Asia for a thriving future

Lendlease has set a global growth target of A$70 billion ($60.7 billion) FUM by FY2026. Underpinned by A$60 billion investment-yielding assets in its development pipeline, this growth is expected to be driven by Lendlease’s co-investments portfolio alongside its investment partners, including expansion into new value-add strategies. “We remain focused on driving best-in class performance for our investment partners globally. This includes accessing compelling investment opportunities, producing leading ESG performance and optimising investment returns,” says Gabbani.

With a robust roadmap for the future, Lendlease looks to embark on its next 50 years in Singapore with an evolved investment-led strategy to scale its growth alongside investors keen to tap into the opportunities that abound in the real estate sector.

Watch Lendlease's 50th Anniversary TVC here.

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