Lend Lease Group Explore potential Shopping Malls in Malaysia

Lend Lease Group, Australia’s biggest developer, plans to expand in Malaysia to make up for a slowdown in residential sales and mining-related infrastructure projects back home. The company is in discussions to invest in about three development projects in Malaysia and expects to complete the first agreement by June 30, Chief Executive Officer Steve McCann said in an interview from Melbourne yesterday.

Lend Lease JV - Setia City Mall 

Lend Lease wants to lower its dependency on the home market to about 60 per cent of earnings in five years from 73 per cent as of December 31, McCann said. Malaysia’s growth exceeded 5 per cent in each of the five quarters through September, outpacing Australia’s average 3.4 per cent expansion in the same period. Lend Lease’s Asian Retail Investment Fund in May opened Setia City Mall in partnership with Malaysian developer SP Setia Bhd.

"Over time, say about five years, we’ll invest more capital overseas," McCann said. "There are a few

encouraging signs in the Australian residential market and there’s a bit more enquiry off the reduction in

interest rates but there won’t be a material turnaround soon in the land subdivision market." The

Sydney-based company’s future developments in Malaysia will be mixed-use projects dominated by retail

space, McCann said. Two of its planned projects in the country will be in Kuala Lumpur and one elsewhere, he said.

Lend Lease in October agreed to jointly develop a 10.9 acre site in a project that will include office, retail and hotel space and homes with Naza TTDI.