Lendlease Annual Report 2022

22 Lendlease Annual Report 2022 Growing our investments platform Our long term strategy is to significantly grow our investments portfolio and over time, we expect more than half of Lendlease's invested capital will be allocated to the Investments segment. We are targeting funds under management (FUM) of greater than $70b by FY26, up from $44b. This is expected to require approximately $6b of invested capital, and entails investing alongside partners in our existing funds, in addition to the launch of new investment products. A strong foundation Our investments platform provides a strong foundation to build global scale. We have decades of experience managing real estate assets with trusted fiduciary and governance structures, and our expertise spans multiple sectors in both the listed and unlisted markets. We currently manage 38 funds and mandates. In addition to the high quality and sustainable product created from our development pipeline, we have expertise in generating value through asset management. Building a scale platform Our development pipeline is anticipated to provide approximately two thirds of the growth towards our FUM target. This includes: • Sustainable office: we have a strong track record of creating some of the most sustainable Premium and A grade office buildings and manage more than $23b in FUM. • Apartments for rent: we have completed residential for rent product in the US and UK and now have almost $3b in FUM. • Life sciences: global healthcare is rapidly innovating to meet changing needs. We are pivoting from a construction led capability to fully utilising our integrated model, targeting life sciences projects globally. • Data centres: we have started our first data centre in Tokyo which is 100 per cent let and due to complete in FY25. A Lendlease fund has been the world's most sustainable office fund for seven of the last eight years. For decades we have been trusted with managing funds and assets for some of the world's largest real estate investors. We formed a $1b partnership to develop state-of-the-art labs, offices and manufacturing spaces in high growth life science clusters across the US. We also launched a $1b innovation fund which focuses on properties linked to both innovation and life sciences such as laboratories, medical science facilities and manufacturing spaces. We believe there is significant opportunity for FUM growth in this sector across our target cities. We also have the appetite and capability to launch new products underpinned by our end-to-end capability, and both on and off market growth opportunities alongside investment partners. A recent example is the launch of Real Estate Partners 4, a value-add fund. Top: Sydney: International House (Sustainable office)