Lend Lease Sells U.K. Mall for $1.18 Billion

SYDNEY--Australian developer Lend Lease Group (LLC.AU) sold the Bluewater shopping mall on the outskirts of London to Land Securities PLC (LAND.LN) for GBP696 million (US$1.18 billion).

The deal comes as Lend Lease also looks to restructure or try to sell some recently built properties in the U.K. and Australia, which it said haven't met financial performance targets.

Lend Lease forecast a net profit for the year through June of between 810 million Australian dollars (US$759 million) and A$830 million, after taking into account writedowns on the value of some of the poorly performing projects, proceeds from the Bluewater sale, and a higher expected tax rate. In the previous year, the company reported a net profit of A$552 million.

Around 28 million people shop at Bluewater's three department stores and over 300 retailing outlets annually, individually spending more than GBP150 each time. The mall, which opened in 1999, has been on sale since March.

Proceeds from the deal will be used by Lend Lease to cut debt and support new projects, including some in London, Lend Lease said.

Write to Ross Kelly at [e-mail]

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