First half profits have jumped for Australia’s Lend Lease Corp Ltd following a rise in commercial sales.
Profits increased by 39 per cent as a result of sales from its $6 billion Baranagaroo Sydney waterfront development.
The company reported a net profit of $302.3 million for the first half of the financial year to December 31, an increase on the $217.8 million seen in same period in 2011.
Andrew Cannane, head of business development at The Trust Company, a leading property and infrastructure custodian, told Reuters that the strong sales of the development underline investor interest in Australian property.
"[Foreigners] are seeking strong yield," he said. "Australia is a place where they can get that yield."
Commercial property yields in Australia are around seven per cent compared to a global average of below five per cent.
However, the boost in profits was not matched by an increase in share value.
At the close of markets in Australia today (Monday, February 18th), shares in the company had fallen 2.53 per cent.
Posted by Craig Francis