Infrastructure business picks up for Lend Lease
LEND Lease has boosted its infrastructure and development business with its appointment to two projects in Western Australia and Adelaide.
LEND Lease has boosted its infrastructure and development business with its appointment to two projects in Western Australia and Adelaide.At its annual results last month, the group said its Valemus division, which includes Baulderstone and Abigroup, would be an aggressive player in the year ahead.It is expected the business will also pitch for infrastructure projects in western Sydney earmarked by the NSW government.Lend Lease bought Valemus in March to give it exposure to the growing infrastructure industry.Lend Lease's chief executive, Steve McCann, said Valemus had been selected as preferred developer for construction work on the Adelaide Oval redevelopment project.Baulderstone will work with the Adelaide Oval Stadium Management Authority and the Department of Transport, Energy and Infrastructure to redevelop the oval into a 50,000 seat multi-purpose venue."Construction will commence after the end of the cricket season in March 2012, with practical completion expected in 2014 in time for the AFL season," Mr McCann said.Macquarie Equities property analysts said Lend Lease's performance would be driven by the inclusion of the Valemus business. "Non-residential construction is likely to remain somewhat subdued in the short term although with projects including Barangaroo, RNA Showgrounds in Brisbane, and Victoria Harbour in Melbourne, earnings should begin to improve by the second half of 2012," they said.Mr McCann also confirmed Lend Lease's Syntheo joint venture had secured a $174 million contract from NBN Co for the fibre network roll-out in Western Australia. Syntheo is a joint venture between Lend Lease's project management and construction business and Service Stream.