Lend Lease homes in on US
In the US, Lend Lease operates under its infrastructure, development and construction banners, all of which have secured new contracts and reported a turnaround in earnings in the past 12-18 months.
The chief executive, property, Australia, at Lend Lease, Tarun Gupta, confirmed Mr Hickey's appointment. He will report to Bob McNamara, CEO, Americas, and will work to further activate the group's integrated model in that region. In particular, Mr Hickey and Mr McNamara will work to identify development investment opportunities and third party capital sources.
"Since joining Lend Lease, Denis has been instrumental in repositioning the Australian development business, driving operational efficiencies and securing major project wins - including Sydney International Convention Exhibition and Entertainment Precinct," Mr Gupta said.
"We have a very strong management team in place and the business is well positioned to go from strength to strength. It will be business as usual until Denis relocates in January 2014."
He said Lend Lease would make an announcement regarding the leadership of the development business before Mr Hickey moved. In his new role, Mr Hickey will also focus on driving "co-capital partnerships" such as the one the group has done in Australia with joint venture partners to develop the $6 billion Barangaroo South project.
For the year to June 30, Lend Lease's US operations reported growth in several urban markets, such as New York City, Chicago, Boston, Washington DC and San Francisco.
In the construction business, profit before tax rose 13 per cent to $47.4 million, despite restructuring costs being incurred.
The development business in the Americas narrowed pre-tax losses from $8.7 million last year to $6 million this year, helped by the $100 million Winston-Salem Veterans Affairs Healthcare Centre project.
Profit before tax for the infrastructure unit also rose after its Actus group reached financial close on the Privatised Army Lodging (PAL) Group C project.
Frequently Asked Questions about this Article…
Lend Lease has identified the US as a key region for significant future growth, citing new contracts and an earnings turnaround across its infrastructure, development and construction businesses in the past 12–18 months.
Denis Hickey's appointment signals Lend Lease's push to expand its integrated model in the Americas. He will report to Bob McNamara and focus on identifying development investment opportunities, third‑party capital sources and driving co‑capital partnerships.
Lend Lease plans to pursue co‑capital partnerships—similar to its Australian joint venture for the $6 billion Barangaroo South project—to combine development expertise with third‑party capital and accelerate large projects in the Americas.
For the year to June 30, Lend Lease reported growth in several US urban markets, including New York City, Chicago, Boston, Washington DC and San Francisco.
Lend Lease's US construction business reported a 13% rise in profit before tax to $47.4 million, despite incurring restructuring costs.
The development business in the Americas narrowed pre‑tax losses from $8.7 million to $6 million year on year, helped by the $100 million Winston‑Salem Veterans Affairs Healthcare Centre project.
Lend Lease's infrastructure unit improved profit before tax after its Actus group reached financial close on the Privatised Army Lodging (PAL) Group C project, contributing to the unit’s stronger results.
Denis Hickey is scheduled to relocate in January 2014. Lend Lease said it would announce leadership arrangements for the Australian development business before his move, with the Australian team expected to continue operating strongly in the meantime.
Call 1300 880 160
Start a chat
Schedule a call
