The Rise of Intellectual Capital As an Essential Business Asset
Total Page:16
File Type:pdf, Size:1020Kb
A $81.6 BILLION IN FUNDS UNDER MANAGEMENT REPORT TO SHAREHOLDERS 2000 New look real estate services˜ integrated & global. The rise of intellectual capital as an essential business asset. Powerful plan. Powerful future. Lend Lease An Integrated Real Estate Group 6 Financial Highlights A quick view of the year’s results. THEATRE,LOWRY SALFORD 8 Chairman’s Report The importance of our core values to our future. http://www.lendlease.com 14 Chief Executive’s 38 eCommerce 40 Intellectual Capital Report A global market place with Knowledge, people, culture – new dynamics transforming The value that can be created Lend Lease is its people. our business. through the integrated real estate platform. feature stories... 44 Stuart Hornery Daring to be different creates 2 Integrated & Global a reputation for success. Benefits Everybody We can offer a portfolio of real 46 The Hornery Institute estate services that cross traditional business lines. The next chapter of the Lend Lease philosophy of caring and sharing. 48 Board of Directors Our Directors comment on the challenges of change. 50 Community Day Our employees tell of how we can personally make 13 Jill Ker Conway a difference. Our Story, Our Future. Introducing our Chairman Elect. 51 Corporate Governance Our governance must reflect that we are now a global company. 57 Concise Financial Report 2000 18 Areas of Operation Results, management REAL ESTATE INVESTMENT discussion and analysis & FUNDS MANAGEMENT and Directors’ Report. Directing global capital flows. BOVIS LEND LEASE “Guidance and services for businesses A strategic partner that delivers. PROPERTY DEVELOPMENT investing in or managing global Building communities. real estate assets.” LEND LEASE 2000 REPORT TO SHAREHOLDERS 1 OUR INTEGRATED MODEL Integrated & Global Benefits Everyone… As businesses become more global they must invest in or manage a global portfolio of real estate assets. Only a global real estate company with skills in project management and construction, real estate investment and funds management and property development can provide optimal guidance and services. We understand real estate assets, know more about the cities of the future and the technologies that will shape building. We can see better than anyone how to find and develop assets to produce enhanced income streams and reduce risk. The Customer The Investor The Employee We have the platform to offer a For those who want to invest As a knowledge based service busi- portfolio of services – a series of in real estate – buildings and ness which operates around the solutions for customers with real facilities, high return income world we can offer great career estate assets. There is a growing streams, redevelopment of built opportunities to employees. We’ve group of clients who want a environments – our mix of skills always invested in developing our company able to serve them reduces risk. Because we can employees’ talents, and provide for globally and provide broader finance, design, build and place substantial employee ownership. advice and services, such as capital assets with institutional We aim to grow our human capital construction clients who want investors we manage risk better as well as our financial – and that development, finance and than anyone else. makes Lend Lease a great place advisory help. (see page 20) to work. (see page 28) (see page 40) 2 LEND LEASE 2000 REPORT TO SHAREHOLDERS EQUITY DEBT Project Management and Construction (see next page) Real Estate Investment and Funds Management (see next page) Property Development (see next page) The Partner The Supplier The Shareholder We believe we do our best work We procure products and services Lend Lease investors can rely when we involve quality partners. on behalf of our clients, and have on a highly skilled global team We actively seek out long term established relationships with leading the business to take strategic partnerships. Partners our suppliers to meet those needs. advantage of opportunities choose to work with us because Our suppliers have substantial across the real estate spectrum. of the breadth and depth of skills opportunities working with us as This enables us to continue to we bring to the table, but also our a global business. We share the deliver capital growth. ability to work closely with the benefits of efficiently managing (see next page) communities in which we operate. the supply chain. (see page 34) (see page 38) LEND LEASE 2000 REPORT TO SHAREHOLDERS 3 OUR INTEGRATED MODEL Integrated Services Our business platform We now have the platform to build 2. Project management asset from development, through a fully integrated global real estate and construction – construction to investment. group comprising three primary Bovis Lend Lease We understand the benefits that businesses: works with a blue chip global can be gained from the integration of corporate client base, often on a asset and development management • real estate investment and funds fee for service basis. It has the ability and project management – develop- management; to provide a total solution to a ment can enhance returns for • project management and client’s asset creation needs, from investors or achieve better solutions construction; and feasibility, planning and financing for our project management clients. through to actual completion of Project management skills reduce • property development. construction and commissioning. risk for our investors in our funds. Our Group operates in 40 countries It also differentiates us as a property 3. Property development – on six continents, with a significant investment manager. Our services extend presence in Asia/Pacific, Europe and We have a multi-geography and to commercial, retail, multi-family the United States. We have over 10,000 multi-product capability in raising residential, and complex urban employees around the world and our capital – so we can take advantage mixed-use projects with a strong revenue pattern has changed from a of differential returns around the retail focus, often with third party reliance on earnings from Australia world and deliver it via a number capital. A number of high profile to a more globally diversified of products such as real estate debt, projects have recently been income stream. equity, listed and unlisted markets. completed or are in progress in We believe we can add superior We understand the investment every region of the world in value for clients through our unique cycle in property – to share in the which we operate. mix of skills and platforms. value created we have to ensure Clients in each of these businesses performance for our investors but A full real estate company expect and obtain specialised and also participate in the returns via We now have the focused services either within a co-investment or fee for performance. components of a full real region or globally. It is integrated because we can estate company. They are: There is a growing group of clients offer a portfolio of these products who now want a global integrated and services to customers that cross 1. Real estate investment offering. There are also clients for traditional real estate business lines. and funds management – EQUITY whom we see the opportunity to add We can offer those services and We are one of the more value to their business by knowledge directly to global customers largest managers in the world. offering them an integrated service. – one provider, all services. We manage more than A$81 billion They are looking to get a broader Clients who deal with us at a for institutional, mutual fund and range of services from a fewer number regional or specific business level can private clients. That money is of providers with multiple skills and benefit from our breadth. We draw invested in property funds, real global scale, such as construction on our knowledge and expertise, our estate securities, mortgages and clients who want development, research capabilities, our skills, and commercial mortgage-backed finance and advisory help. our network of partners. No matter securities. We also service some where our clients’ business or project A$93 billion of commercial real To those clients we offer a is we can leverage our knowledge, estate loans. We are well unique integrated real estate skills and experience to provide a positioned to take advantage of portfolio of services. superior return. opportunities in regional markets This is unique because we have all in both public and private markets, Examples of these integrated services are: three arms in three major regions – and in cross-border arbitrage Asia/Pacific, US and Europe. 1. We can bring not only investment opportunities to earn premium We understand the property life management skills but also develop- returns for our clients. cycle – the potential to take an ment and project management skills 4 LEND LEASE 2000 REPORT TO SHAREHOLDERS OUR INTEGRATED MODEL to corporate clients who seek to take real estate off their balance sheet so that capital is focused on their OFFERING OUR INTEGRATED SERVICES TO CLIENTS core business. 2. We can bring third party capital to clients who need to upgrade their physical environments such as manufacturing plants and offices. We can also provide the skill to create the assets they need to run their business as well as development, project management and construction services to carry out the upgrade. PARKWAY PARADE, SINGAPORE LtoR: LIM POH TIN, HO CHUN KWONG, ANDREW SWEENEY, TAN SER JOO AND JOHN SIRONIC 3. For clients who engage us