Lend Lease Corporation, Tokyu Corporation Limited and Tokyu Land Corporation terminate joint venture

Lend Lease Corporation Limited ('Lend Lease'), Tokyu Corporation and Tokyu Land Corporation announced today the termination of formal negotiations on the expiry of the Memorandum of Understanding ('MoU') between Tokyu and Lend Lease to establish a joint venture real estate investment trust (J-REIT) management business in Japan.

Tokyu and Lend Lease signed a Memorandum of Understanding in June 2001 to examine the feasibility of collaborating in a wide range of real estate investment related businesses in Japan, with the first priority of that business being the formation and listing of a J-REIT on the Tokyo Stock Exchange during the fiscal year commencing April 2002. The three parties have agreed that Tokyu will proceed with the J-REIT formation as planned, whilst Lend Lease will pursue other opportunities to grow its businesses in Japan. Tokyu and Lend Lease will continue with discussions with respect to collaborating on a wide range of real estate investment related businesses.

Mr Kiyofumi Kamijo, President of Tokyu Corporation, said 'Tokyu Corporation and Tokyu Land Corporation will continue with plans to launch a J-REIT in 2003. This strategic initiative is vitally important to the future of the Tokyu Group, as it illustrates our new business model.'

Mr David Higgins, Chief Executive Officer of Lend Lease Corporation, said 'The negotiations between Tokyu and Lend Lease had identified much common ground. However, it has not been possible to agree a basis upon which to move forward together with the J-REIT management business at this time.

'We have developed a great deal of respect for Tokyu. Both organisations have learned much from each other over the last twelve months, and we intend to continue our dialogue with Tokyu.

'Lend Lease has been active in the real estate sector in Japan for 15 years through Bovis Lend Lease, which has a solid project management business base there. In Real Estate Investment Management, we have our distressed debt business platform which has US$6.7 billion in Assets Under Resolution in Japan, and our Global Fund made its first acquisition in Tokyo last year and is seeking further investment opportunities. We continue to see significant business potential in Japan and our resources on the ground will continue to seek out appropriate opportunities,' Mr Higgins said.

(source: Lend Lease)

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