Lend Lease Primelife clears the decks with a $185 million write down

Fifty-five days after winning control of Babcock & Brown Communities, the newly badged Lend Lease Primelife has announced $185 million in non-cash asset write downs, clearing its balance sheet for the future. They control 56 villages and 29 aged care facilities, the adjustment is not large compared to some operators. It was made up by:

• Retirement villages valued down by $50 million
• Undeveloped land and ILU's valued down by $70 million
• Restructioning costs and other impairments cost $25 million
• Interest rate hedges (established by BBC) - cost $40 million

The impact is a drop in the Net Asset Backing of $0.20 per share to $0.60. This compares to its share price this week of just $0.12 - one fifth of the real value of the company.

Other stories in this section:

• RVA wins Andrew Giles as CEO
• Villages education strategy launch with 2GB/2CH set for March 10
• Rare approval: Greg Mundy and ACSA support Commission's interim report
• Retirement Communities World Conference program available
• Prime Trust gives insight into ILU sales and sets itself for rebuild

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