Lendlease Annual Report 2024

Financial Statements 151 33. Disposal Group Assets and Liabilities Held for Sale Accounting Policies The group of assets and their corresponding liabilities (together referred to as a Disposal Group), may only be classified as held for sale once the following criteria are met: • The carrying amount will be recovered principally through a sale transaction rather than through continuing use; and • The sale must be highly probable. A disposal group is measured at the lower of its carrying amount and fair value less costs to sell. Where fair value is lower than the carrying amount, the difference is recognised as an impairment loss within the Income Statement. Australia Communities projects On 18 December 2023, the Group announced that it had entered into an agreement for the sale of 12 Australian master-planned Communities projects to Stockland Corporation Limited and its capital partner, Supalai Australia Holdings, for $1.3 billion, including the assumed exercise of a $239 million right to acquire certain land parcels. The transaction is subject to various conditions precedent, including Foreign Investment Review Board (FIRB), Australian Competition and Consumer Commission (ACCC) and relevant landowner approvals. On 4 July 2024 the ACCC released a Statement of Issues in relation to the acquisition, which outlined the preliminary views of the ACCC and identified areas of further enquiry. The ACCC advised a provisional date for announcement of its final decision of 12 September 2024, however this date is subject to change. As part of the transaction, the Group will retain four Communities projects, which will continue to be recognised as part of Core operations within the Development segment, with an Inventory balance of $243 million as at 30 June 2024. Asia Pacific Life Science Platform On 17 May 2024, the Group announced it had agreed to sell its Asia life sciences interests, which includes current life sciences construction and development capabilities together with the life sciences investments, to a newly established joint venture with Warburg Pincus, for $147 million. The transaction, which was completed after the year-end, realised approximately $60 million in net cash proceeds to Lendlease. The businesses and assets to be sold are currently recognised in the Construction and Investments segments. US Military Housing On 1 July 2024, the Group announced it had entered into an agreement with Omaha Beach Investment Holdings, LLC, an entity managed by Guggenheim Partners Investment Management, LLC, for the sale of the US Military Housing business for $480 million. The US Military Housing Business includes the operating platform of the business along with associated management rights for asset, property, development and construction management. Profit after tax of $105 to 120 million is anticipated from this transaction, with financial close and receipt of cash proceeds targeted by the end of 1H FY25. The transaction is subject to completion adjustments and conditions precedent including third-party consents from particular service branches of the U.S. Department of Defense. The business to be sold is currently recognised in the Construction and Investments segments. The major classes of Disposal Group assets and liabilities held for sale in relation to these transactions are listed below. These balances are as at 30 June 2024 and do not represent the expected capital of the projects at completion, which will change based on the operations of the business up to that date. The purchase price is also subject to adjustments calculated at the date of completion. June 2024 Australia Communities Projects Asia Pacific Life Sciences Platform US Military Housing Total Group Disposal Group assets and liabilities held for sale $m $m $m $m Loans and receivables 74 14 153 241 Inventories 1,108 6 6 1,120 Other financial assets - - 171 171 Other assets 7 25 32 64 Total Disposal Group assets held for sale 1,189 45 362 1,596 Trade and other payables 63 19 74 156 Other liabilities 137 1 9 147 Total Disposal Group liabilities held for sale 200 20 83 303 Net Disposal Group assets and liabilities held for sale 989 25 279 1,293