Construction group’s Europe division is star performer in strong half-year results

International Quarter

Lend Lease’s Europe division posted a nine-fold increase in pre-tax profit in strong half-year results for the Australia-based construction group.

Lend Lease’s Europe division posted pre-tax profit of A$75.3m (£38.1m) for the six months to December 2014, up from A$8.2m (£4.2m) the previous year.

The firm’s European division was Lend Lease’s standout regional division for the half-year period.

Overall Lend Lease posted a 25% increase in after-tax profit to A$315.6m (£159.7m), up A$251.6m (£127.3m) the previous year.

Lend Lease chief executive Steve McCann told investors the group had been boosted by residential markets in the UK and Australia, which “have remained strong”.

The firm’s European construction division posted a profit for the period of A$13.5m (£6.8m), the region’s property development arm posted profit of A$16.4m (£8.3m), boosted by the sale of its stake in Bluewater shopping centre, and residential sales rose 300% to A$1.1bn (£560m), boosted by sales at Elephant & Castle, Wandsworth and The International Quarter in Stratford.

Lend Lease also disclosed it was in discussions with “major tenants” on pre-lets that would enable construction to begin on the first two commercial towers at The International Quarter (pictured), where the first 333-home residential phase is already under construction.

The firm’s Australian business also posted a pre-tax profit increase of a third to A$297.6m (£150.6m), but pre-tax profit at its Asian division dropped almost three quarters (72.4%) to A$19.1 (£9.7m); while pre-tax profit in the Americas also dropped almost a quarter (22.7%) to A$37.2m (£18.8m).