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Lend Lease Group (LLC) said, along with one of its managed funds the Asian Retail Investment Fund (ARIF), they have agreed to pay $618 million for the Jurong Gateway Road site in Singapore. The group made the announcement after they outbid a rival for the large scale mixed use suburban development by $17 million.

Lend Lease said the asset would be owned 75% by ARIF, with Lend Lease owning the remainder.

The group said the site has capacity for circa 108,000 square metres of development, including a regional suburban shopping centre and commercial tower.

Lend Lease said the acquisition would be funded by a combination of non-recourse project based debt and equity. Project debt of over S$800 million has already been secured.

Lend Lease CEO and managing director, Steve McCann, said the deal was an important transaction for the group’s Asian business as it continues to grow its presence in the Singapore retail market.

“This opportunity will significantly enhance Lend Lease’s retail and investment management platforms in Singapore leveraging off the highly successful 313@somerset development,” Mr McCann said.

The group said the bid remains the subject to final approval and notification by the vendor, the Urban Redevelopment Authority of Singapore.

As at 1031 AEST, Lend Lease shares were down 11c to $7.34.

Stockland (SGP) announced an estimated dividend for the six months to 30 June 2010 of 10.8c per share. The property development company said this equates to a full-year dividend of 21.6c per share.

Stockland paid out a dividend of 17c in the second half of last year and a full year dividend of 34c.

The group said the record date for determining entitlement to the dividend is 30 June 2010, while the dividend payment would be made on 31 August 2010.

Stockland said the full year financial results would be announced on 11 August 2010.

As at 1052 AEST, Stockland shares were up 2c to $4.04.

Goodman Group (GMG) said it has established two new “co-investment vehicles” with CB Richard Ellis Realty Trust (CBRE) in both the UK and Europe. Goodman Group said the vehicles would invest in logistics development opportunities, however on just an 80/20 split, mostly held by CBRE.

Goodman said the UK co-investment vehicle would target a total investment of £400 million (A$696 million) over an initial investment term of three years.

Meanwhile the European co-investment vehicle would target a total investment of €400 million (A$575 million) over an initial investment term of three years, focusing on Germany, France and Benelux.

Goodman Group CEO, Reg Goodman, said it would allow the company to continue to build momentum across our European platform.

”Our focus remains on building strategic relationships with leading global investor groups, such as CB Richard Ellis Realty Trust, to deliver on our key objective of matching new third party capital with Goodman’s development pipeline,” the company said.

At 1103 AEST, Goodman shares were trading up 1c at 66.5c.

AVJennings Limited (AVJ) said it has entered into a conditional contract to sell its contract building division to the Japanese listed company, Sekisui House Limited. The Australian residential development company said the arrangement would also see the two companies form an alliance around land and the use of the AVJennings brand, ownership of which would remain with AVJennings Limited.

AVJennings said it would receive payments under the arrangements equivalent to the net asset value of the business on the completion date.

“This is anticipated to result in AVJennings receiving payments of approximately $18.5 million at completion,” the company said.

“AVJennings will retain ownership of the AVJennings brand and continue to use this brand for its developments operations.”

AVJennings said it would also license to Sekisui House the ‘AVJennings’ brand and associated trademarks for use in the contract building business in return for a cash royalty based on the revenue and profit of the business for an initial three-year term.

Chief executive, Peter Summers, said the approach was initiated by Sekisui House and that the company had not been looking to sell its contract building division.

However, Mr Summers said that whilst the last 12 months had seen considerable improved performance in AVJennings’ contract building division, continued improvement would require additional resources to be invested in it.

“AVJennings returned to profit in the first half of this financial year and we believe this realignment of our core business will further allow the company to grow its integrated housing model and focus its time and capital on land based operations into the future, which are the main profit drivers for the company,” Mr Summers said.

He added that the terms of the sale would provide for an ongoing alliance with Sekisui House.

The transaction remains conditional on the approval of the Foreign Investment Review Board and other regulatory approvals, and subject to obtaining these approvals, is expected to settle on or around 31 July 2010.

As at 1044 AEST, AVJennings shares were unchanged at 41c.

Challenger Diversified Property Group (CDI) estimated a distribution of 2.15c per unit for the six months ending 30 June 2010. The group also said that after completing valuations across its entire property portfolio it expects an uplift in values of around 2% with strong increases in properties with long leases in place.

CDI said combined with the interim FY10 distribution of 2.05 cents per unit paid in February, the second half distribution would bring CDI’s total distributions for FY10 to be in line with guidance at 4.2c per unit.

The group said post revaluations, its net tangible assets as at 30 June 2010 is forecast to increase to 66c per unit, with balance sheet gearing expected to fall to 23.1%.

Fund manager, Trevor Hardie, said CDI continues to perform to expectations.

”Importantly we have met our 4.2c per unit distribution guidance for FY10, and in addition, a 2% uplift in valuations is a positive for CDI going forward,” Mr Hardie said.

”Notwithstanding this, CDI currently trades at a 20% discount to NTA and a FY10 distribution yield of 8%.”

As at 1116 AEST, CDI shares were down 0.5c to 52c.

Stockland Group (SGP) has purchased a 54-hectare parcel of land in south-east Queensland for $23.5 million. The land, around 35 kilometres south of Brisbane CBD, will add another 530 lots to Stockland’s interest in the area, bringing it to a total of 1,600.

"The project would have an end value of around $210 million and would assist in providing a range of affordable housing solutions in this sought-after corridor," Stockland said.

Stockland CEO Residential, Mark Hunter, said it provided the company more access to the popular Greater Brisbane South growth corridor.

“This transaction is a key example of our commitment to increase our market share in key corridors across the country, in line with our growth strategy for the Residential business,” Mr Hunter said.

“We’ve also recently extended our market share into new growth corridors in Victoria and Western Australia, with the acquisition of five other land parcels to date in FY10.”
 
The group said this brings to six the number of residential land acquisitions Stockland has made this financial year, bringing its newly acquired lots to around 5,280 at a total cost of around $274 million for the period.

At 1428 AEST, Stockland shares were trading up 5c to $3.92.

Westfield Group (WDC) reconfirmed the group’s 2010 distribution forecast of 64c per share, based on a payout level of between 70% and 75% of operational earnings. Chairman, Frank Lowy, also said in his address to members at the AGM, that the company was now seeing improvement in retail sales performance in both the United States and United Kingdom.

Mr Lowy said in previous years Westfield had paid out 100% of operational earnings and the decision to reduce the level of the group’s distribution was not taken lightly.

“However the Board decided and announced last year that a prudent way of funding our extensive development program, at least in part, was to retain part of our earnings each year – for that purpose,” Mr Lowy said.

He said the good news is that the retail property group was beginning to see more positive signs emerging in the fundamentals of the economies in which the Group operates.

”Although these are early signs, they give us some confidence that things are improving,” Mr Lowy said.

Mr Lowy said the results from the first quarter of operations this year confirm this better outlook.

As at 1121 AEST, Westfield shares were up 13c to $12.16.

Goodman Group (GMG) said it has signed a Memorandum of Understanding with the Langfang Municipal Government to participate in the development of a business and logistics hub in northern China. The group expects to deliver the project over the next seven years and receive a fee for service role.

CEO, Greg Goodman, said the announcement marks an important step in the continued development of the group’s Asian business and is a further indication of its growing and long-term commitment to the Chinese market.

”Goodman expects to generate fee income over the life of the project and will also consider further investments for itself and its investment partners in the development of logistics and business park product at the site on a case by case basis,” he said.

Goodman manages a total portfolio value of around US$1.6 billion in Greater China.

As at 1039 AEST, Goodman shares were down 0.5c to 63c.

Stockland (SGP) said this morning that it was on track to achieve record residential sales this financial year. The property developer also reaffirmed its FY10 earnings guidance of 20c per share.

Speaking at an investor update this morning, Stockland said it had achieved around 5,000 net deposits through to the end of April.

Managing director, Matthew Quinn, said margins on residential homes had increased by around 1.5% in the second half as prices increase, particularly in Victoria and Western Australia.

“With rental vacancies remaining low, we’re also seeing continued investor interest,” Mr Quinn said.

“Affordability continues to deteriorate following six interest rate rises since October 2009,” he added.

Mr Quinn said there had been a shift in buyer composition, with upgraders making up around 44% of FY10 net deposits, compared with 36% in FY09.

Stockland also said that it had a high level of lots under production, with many off-the-plan sales due to settle next year.

At the close of trade yesterday, Stockland shares were trading at $3.80 each.

Goodman Group (GMG) and the Canada Pension Plan Investment Board (CPPIB) launched a new fund known as the Goodman Australia Development Fund (GADF). Goodman said the new fund would have an initial equity commitment of $250 million with a target gross asset value of approximately $400 million.

The group said the Fund would be established on an 80/20 basis, with CPPIB holding the majority stake.

Goodman said GADF would be established and seeded with the acquisition of Goodman’s Kmart development in Melbourne for a total consideration of $66.3 million.

Goodman CEO, Greg Goodman, said the fund was the group’s second with CPPIB following the China fund announced last August.

“The new fund will focus on acquiring a range of high quality pre-committed development opportunities in Australia and importantly secures a funding platform for our Australian development business over the next two years,” Mr Goodman said.  

The group said GADF would be seeded through the acquisition of the 76,000 square kilometre distribution centre currently being developed for Kmart in Melbourne.

The development is to be acquired by the Fund.

Goodman said the transaction is subject to the approval of the Foreign Investment Review Board.

As at 1023 AEST, Goodman shares were down 0.5c to 66.5c.