INDUSTRY NEWS

Lend Lease to write down £350m

Commercial property construction firm Lend Lease is about to write down A$760 million (£350 million).

The company said it will add A$290m (£134million) to the A$470m (£217m) losses it predicted in November.

Lend lease has explained that £97 million of the additional write-downs are from UK commercial property.

In response to the Australian Securities Exchange price query, the firm said it expected profits to fall between ten and 15 per cent.

Company secretary William Hara said there are still a number of transactions expected to help it reach its predicted profits.

However, Mr Hara commented: “In light of the continuing lack of liquidity in debt markets and current economic conditions, Lend Lease cannot be certain that these transactions will occur in the current financial year.”

The firm has a large stake in developing the infrastructure of the London 2012 Olympics. Cash shortages, however, have forced the government to take an increased share of the build costs.
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