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Lendlease, SoftBank form JV to target US$5B of telecom assets in the US

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Lendlease, SoftBank form JV to target US$5B of telecom assets in the US

Lendlease Corp. Ltd. is partnering with SoftBank Group Corp. to develop and own telecom infrastructure assets in the U.S., with the joint venture targeting US$5 billion of assets over the medium term.

Lendlease and Softbank have each committed US$200 million in equity to fund identified seed assets of roughly 8,000 rooftops and other telecom sites. The Australian developer will serve as the joint venture, asset and development manager of the partnership, and noted that they will also look to introduce capital partners as the joint venture grows.

In May, Lendlease purchased U.S.-based infrastructure management company Parallel Infrastructure, which owns and operates 450 towers nationwide.

Meanwhile, Lendlease said in the same release that it is selling a 25% stake in its retirement living business to APG Asset Management NV, an existing investment partner of the company. The purchase price was undisclosed price and the company noted that it is a "small premium" to the business' carrying value, as at June 30.

The divestment is expected to result in a net loss after tax of roughly A$35 million, including transaction costs, for Lendlease. The deal is subject to certain conditions that the company expects to be satisfied by Dec. 31.

Lendlease will retain the remaining 75% stake in the retirement business. Previously, China Investment Corp., Blackstone Group LP, Canada Pension Plan Investment Board and Cindat Capital Management were reported to have been interested in the A$1.7 billion portfolio.

Lendlease also said it expects fiscal 2018 to be affected by the underperformance of its construction business at home, leading to an expected year-over-year decline in the half-year 2018 EBITDA contribution of the business. It added that the underperformance, however, will be offset by the performance of its other businesses.