The acquisition is the final step of an agreement Lend Lease signed in 1996 for Tricontinental's staged exit from its investment in the Twin Waters Resort and surrounding land assets. Lend Lease previously acquired the adjacent Twin Waters and North Shore residential developments, which are valued at $270 million.

Lend Lease says it is planning a staged six-year redevelopment of the 366 room resort hotel and central facilities that will include high-end residential precincts available for public sale. The resort is expected to remain fully operational in its existing configuration for at least 12 months while the redevelopment master plan and authority approvals are finalized.

Lend Lease expects to have the necessary approvals and pre-sales to commence the staged redevelopment by mid 2004 and complete it by 2010. Lend Lease says it will sell ownership of the central facilities, golf course and resort management rights to a specialist operator once the upgrade is complete. Twin Waters Resort is currently operated by the Accor Group.