Tuesday, May 12, 2009

Lend Lease of Australia cuts profit forecast

(SYDNEY) Lend Lease Corp, Australia's largest property developer, yesterday slashed its profit forecast, saying the global real estate slump has forced it to delay the sale of assets.

The company now expects A$300 million (S$334 million) in net operating profit for the fiscal year ending June 30, down 25 per cent from the top of its previous forecast of A$380 million to A$400 million.

'Given current market conditions Lend Lease does not believe it is appropriate to sell certain assets' including stakes in some projects in Britain, the company said in a statement.

Chief executive officer Steve McCann said there are signs the global property market is beginning to bottom.

'Australia is in a better position than the UK and the US and is unlikely to get much worse,' he said. -- AP

Source: Business Times, 12 May 2009

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