Lend Lease Selling Fund Advisory Business to Management

HONG KONG-Lend Lease Corp. Ltd. has agreed to sell the advisory company that created its $1.6-billion, fully invested closed-end global property fund to the management team that created it. The seven managers left the company and created their own firm last October after Lend Lease decided it wouldn’t start new funds as originally planned.

The fund is called Lend Lease Global Properties SICAF and the associated advisory company is called Lend Lease Global Real Estate Advisors S.A. The new firm formed by management of the advisory is called Ochtar Capital Partners. The sale includes the advisory business conducted by the advisory, two other companies and certain assets relating to the business. In addition to the fund, the advisory provided asset and development management services to joint venture partners on projects valued at $455 million.

In consideration of this transaction, when the fund is liquidated between 2006 and 2009 Ochtar will receive 25% and Lend Lease 75% of any incentive fees, which would be any profits received over a certain percentage return for the fund’s investors. Lend Lease also will provide a working capital loan to the acquirer, together with transitional services for a period of six months. Lend Lease retains a $100-million investment in the original fund, which utilized $600 million of equity.