Lendlease Annual Report 2024

Managing and measuring value 31 Our growing build to rent offering Renters and cities are grappling with increased migration, demographic changes and housing shortages that have impacted people's ability to live and work in the areas that they want. Our build to rent (BTR)/Multifamily apartments create places where people can thrive, by offering our customers flexibility and elevated living in a safe, connected community. We have a history of constructing these assets in the Americas and Europe, completing 2,800 apartments since 2019. In major cities around the world, BTR projects are in demand, investment grade assets, supported by industry fundamentals of housing shortages, government policy, demographic change, city migration trends and investor appetite. By applying this expertise, along with more than 60 years of capabilities and leadership, we are enhancing customer value through our growing domestic pipeline of approximately 1,800 BTR apartments, including the recently announced Gurrowa Place . In partnership with the City of Melbourne, this project will deliver around 560 BTR apartments as part of the broader $1.7b redevelopment of the southern site of the iconic Queen Victoria Market. Gurrowa Place is our second BTR project in Melbourne and our third in Australia. Internationally, our BTR offering at The Reed at Southbank in Chicago continues to prove the popularity of Lendlease living, reaching 95 per cent occupancy, on budget and a full month ahead of schedule. This echoes similar leasing success at Elephant Park in London, which we highlighted in this section of our 2023 Annual Report. Going deeper with key investors Japanese investment in global real estate has more than tripled since 2021. One example, our partnership with Daiwa House, reflects the trust our Japanese partners have in our ability to deliver high quality opportunities. Japan’s biggest home builder, with more than six decades of experience in apartment and rental housing, retail, industrial and construction, Daiwa House has partnered with us to deliver the BTR component at Melbourne Quarter. This marks Daiwa House’s debut into Australia’s BTR market and reflects confidence in Melbourne and the asset class. We are committed to broadening our development footprint in Australia and welcome the opportunity to further expand our global relationship with Lendlease to deliver to the Melbourne community this quality build to rent opportunity. Koji Morishige, CEO Daiwa House Australia Daiwa has also entrusted us for its first foray into the new home market in the UK, with the October 2023 announcement of a joint development at Elephant Park in London. We will see out the development and construction of the new homes, which will have an end value of circa £250m, and retain a 25 per cent interest in the project. This will be the final stage of residential development at Elephant Park. These two collaborations extend our strong partnership with Daiwa House, having previously worked on projects, including the 41-storey mixed-use Claremont Hall in New York, which this year commenced condominium closings. Milestones in Asia This year, we celebrated 50 years of operation in Singapore and The Exchange TRX opened its doors to the community – inviting customers to discover the future of experiential retail. Beginning its journey as a truly dynamic and vibrant social heart of Kuala Lumpur, The Exchange TRX marked its opening with a month-long campaign that tapped into the community’s enthusiasm to indulge in highly experiential year-end holiday celebrations. The opening was a resounding success that attracted more than 4.9 million people, exceeding the target by 63 per cent. The Exchange TRX mobile app was introduced, and the campaign successfully acquired approximately 5,000 members for the Lendlease Plus MY Loyalty Programme, which exceeded the target by 75 per cent. In Japan, with partner Princeton Digital Group (PDG), we completed the core and shell construction of one of Japan’s largest data centre campuses, our first under the Lendlease Data Centre Partners facility. Our team worked tirelessly to identify the right location, design and construction schedule to deliver the services and features they need, as the Japanese Government makes efforts to enhance the country’s data capabilities and digital resilience. Playbook for construction excellence Our European business continues to lead on safety, social value and the environment. As the construction partner on 2 Aldermanbury Square in the heart of London, we are leading the delivery of a 13-storey building that will provide more than 27,000 square metres of commercial space. Along with our client Great Portland Estates, and other businesses delivering 2 Aldermanbury Square, we are signing up to a Charter pledging to deliver in line with the principles of a new private sector construction playbook. Lendlease is playing a lead role in developing the playbook, which aims to help improve the way projects are commissioned and delivered for customers. Businesses signing up to the Charter are committing to delivering at the highest standards for their clients across measures that include health and safety, social value and the environment. The Charter will drive higher levels of productivity and enables the most effective use of available resources, while encouraging construction teams and suppliers to work in a more collaborative way to help boost productivity, quality and value for the client.