Lend Lease Corporation Limited

Level 46
Australia Square Tower
Sydney NSW 2000
Australia
(61) 2 236-6111Fax: (61) 2 252-2192

Public Company
Incorporated: 1958
Employees: 4,000
Operating Revenues: A$2.05 billion (1996)
Stock Exchanges: Australia New Zealand

SICs: 1542 Nonresidential Building Construction; 6311 Life Insurance; 6331 Fire/Marine/Casualty Insurance; 6552 Subdividers & Developers, Not Elsewhere Classified; 6282 Investment Advice; 6726 Investment Offices, Not Elsewhere Classified

Lend Lease Corporation Limited is one of Australia’s top 20 public companies and a leading real estate development corporation, with branches and subsidiaries throughout the world. Fiscal 1995 marked the company’s 20th consecutive year of profit growth, as it earned A$260 million (after tax) on revenues of A$1.5 billion. From its inception the company has been an integrated property service, engaged in property development, management and investment, as well as construction of residential, commercial and industrial facilities; in more recent years, Lend Lease added funds management to its roster of services.

Post World War II Foundations

In the late 1940s, Australia was basically a nation of sheep farmers. The country, with a population of 8.3 million, was undeveloped and maintained a colonial dependence upon Europe and other nations for many of the basic necessities of life, in exchange for wool. World War II showed the danger of such an existence, and the nation was very much in favor of developing its own natural resources and skills.

Australia’s dry climate made a source for a plentiful supply of water necessary to the development of the nation. The solution lay in a project called the Snowy Mountains Scheme, which entailed the taming of a snow-fed alpine river by the interruption of its seaward course. The river would then be sent through 130 kilometers of tunnels through a mountain range and a system of holding reservoirs to join rivers on the other side, 900 meters below. This design, however, was beyond the resources of this relatively small nation. What became known as the Snowy Mountains Hydro-Electric Authority (SMHA) was the trigger that implemented Australia’s most ambitious immigration program. A government mission traveled worldwide, recruiting tradesmen, engineers, and laborers.

In Amsterdam the call was answered by Bredero’s Bouwbedrijf of Utrecht (Bredero’s) and The Royal Dutch Harbour Company. Bredero’s sent a 30-year-old engineer, Gerard J. Dusseldorp, to Australia on a fact-finding tour for the Dutch construction firm. What he discovered was a country ripe for development and about to enter a period of great growth and prosperity. His report convinced the two firms to embark on a joint venture. They formed a company called Civil & Civic Contractors and put Dusseldorp in charge. Its first assignment was to supply and erect 200 prefabricated houses for the Snowy Mountain project. The 35 workers for the job were recruited in Holland by Dusseldorp and brought to Australia under the liberalized immigration laws.

Civil & Civic completed its first assignment within 15 months, but out of the SMHA came further jobs for the fledgling company. Bridges, houses, flats, and hospital extensions were added to the projects the company was to complete in the area of Cooma and Canberra. As a result, a locally engaged work force was soon growing around the nucleus of the original 35 Dutch workers.

At all times, however, G.J. Dusseldorp, who was by then Civil & Civic’s managing director, was looking for a way to expand the company’s operations. He focused on Sydney, Australia’s largest city, which was about to experience the largest building boom in its history.

Evolution of a Full-Service Contractor in 1950s

Dusseldorp, as a developer, was constantly seeking a better way to do things, not only to boost company profits, but also to set standards of excellence within the industry. For him, the traditional system of tendering (or subcontracting) was, in his words, “a gushing stream of waste.” When other firms were unreliable, the contractor had to shoulder the burden of their mistakes. He wanted to establish a system that was to remain the foundation of the company’s philosophy—undivided responsibility for any project from start to finish.

Civil & Civic had a chance to try out the new system when a small project in Sydney in 1953 was presented to the company. Dusseldorp was determined to prove that there was a better way to handle a construction project. An oil refinery needed a gatehouse to be added to a new plant currently under construction. Civil & Civic designed and built it within six weeks. It was the firm’s first design and construction project.

In 1954 Dusseldorp’s chance had come to put Civil & Civic on the map by building Sydney’s first concrete skyscraper. He was determined, however, to become the sole entrepreneur, thus ensuring complete control over the project. He wanted to take over the option, the council-approved plans, and the services of the architect and engineer. All that Dusseldorp now lacked was the money.

He approached Bredero’s in Holland for a —100,000 loan which he was refused, but the president of the Reconstruction Bank of Holland was present at Dusseldorp’s presentation. He was impressed with Dusseldorp’s style, determination, and confidence, and backed the loan.

When building work began Dusseldorp was faced with yet another problem besetting the construction industry—industrial action by the workers’ unions. He therefore proposed to the unions an agreement which among other things would include a productivity bonus. Although viewed at first with skepticism, it proved a great success as building workers began to feel like valued employees.

Caltex House was finished months ahead of the original schedule and established Civil & Civic as a leading contractor. Now the company could sell itself as a new composite building service which operated in conjunction with leading architects and engineers. Such a service was designed to eliminate delays and reduce costs.

Creation of Lend Lease in Late 1950s

Yet Dusseldorp was not satisfied. He was still searching for a better package to present to prospective buyers or leasers. During the building boom of the early 1960s there was a great need for new construction of all kinds. Many companies, as a result of their own success, were being forced to build larger premises. The buying of larger premises inevitably meant tying up capital that was needed for business operations. Dusseldorp concluded that what most businesses were looking for were premises which they could lease.

He also saw a need for cooperative projects which would bring together people with a common interest, such as doctors who needed professional consulting rooms. Such professionals would not be able to finance such projects independently. Dusseldorp had the solution.

He decided to float a finance and investment company and go to the Australian public for funds to finance Civil & Civic projects on completion, thus gaining entrepreneurial control over their projects. In April 1958, Lend Lease Corporation Limited was established and floated on the stock exchange with Civil & Civic holding 40 percent of the shares.

This original share issue was floated to finance the construction of a seven-story building containing professional consulting rooms. The deal was that North Shore Medical Centre Pty, Ltd., which owned the land, had the right to occupy or nominate the occupant of specified areas in the building. Lend Lease was to take up the whole of the issued capital of the company on completion of the building and would then sell the professional suites on term contracts over varying periods, while retaining part of the space in the building as an investment—in other words, lending and leasing.

It was not long before Lend Lease began to acquire its own sites, plan the development, and construct buildings in cooperation with Civil & Civic. They were set to provide and complete development of large-scale projects of real estate.

Both Civil & Civic and Lend Lease were out to gain prestige and publicity. They began to tender for projects that would put them in the public eye. Buildings such as the Academy of Science in Canberra would win them the Sulman prize for architecture. It was not until February 1959, however, that Lend Lease became a household name. It was at that time that the company contracted to build stage one of the Sydney Opera House.

Civil & Civic and Lend Lease were not ordinary construction outfits. The management of both organizations had an interest in urban planning and renewal. Plans for new building sites would always include open areas with fountains and plazas so that beauty as well as commerce might be enjoyed.

As the organization grew, it also had to change. Between 1959 and 1962 Lend Lease acquired its original sponsor, Civil & Civic, as well as six companies whose manufactured products were useful to their construction business. These companies supplied Lend Lease with elevators, windows, and building materials. The company also bought a ski resort and a motel chain. It was set to change from the role of financier of other people’s projects to that of developing and managing real capital assets for long-term property investors.

In June 1960 a subsidiary company was formed to take control of Lend Lease’s joint operations with Civil & Civic. The parent company formulated policy and provided specialist advisory skills. It also developed new projects and raised the money to carry these projects out. The subsidiary, Lend Lease Development Pty. Ltd., selected and purchased the sites, dealt with the authorities, and managed the design and construction of the site, as well as the sale or lease of projects.

Lend Lease was now involved in a multitude of projects from commercial buildings to suburban housing to recreational sites. The group was expanded to include 14 operating companies. Their presence was virtually ubiquitous in Australia, especially in the cities of Sydney, Canberra, Melbourne, Launceston, Brisbane, and Perth.

In May 1968 one of Lend Lease’s largest projects, Australia Square, was officially opened by the Duke of Edinburgh. It won the Sulman Award for Architectural Merit, and the Civic Design Award of the New South Wales chapter of the Royal Australian Institute of Architects for a work of outstanding design.

By 1971 property values in Australia were peaking. Dusseldorp could see that the bottom was soon going to drop out of office development market and it was decided that Lend Lease would end its work in this field. It would instead turn its attention towards shopping centers. The shift in activities was not unusual for this corporation. The key to its success was its ability to keep its finger always on the pulse of change.

Lend Lease continued to retain a long-term interest in properties developed without long-term capital investment, and to be free of fluctuations in the property market through public subscription and independent property trusts. Lend Lease was the first developer to go public and to form in 1971 General Property Trust, a publicly owned real estate trust to hold its properties.

International Growth in 1970s

On June 30, 1971, G.J. Dusseldorp’s contract with Bredero’s, which made him available as principal executive of the group, expired. Dusseldorp agreed to be retained until June 30, 1975, with a renewable clause thereafter. The new agreement allowed Dusseldorp to have interests outside Australia. Dusseldorp wanted to try his style of business in the United States. Through its subsidiary, U.S. Lend Lease, established in 1972, formed International Income Property (IIP).

Despite the multitude of activities in which Dusseldorp and his team were involved, he was nonetheless paving the way towards his own retirement by grooming his executives for future management. His contributions to the success of Lend Lease were considerable. Although he surrounded himself with a team of some of the best people in the business, there is no doubt that the inspiration for the projects, as well as the new ways of handling development and finance, all sprang from the mind of Dusseldorp. His aversion to borrowing kept the firm’s debts below 50 percent of its total capital, a low figure compared to those of rival developers. Year after year, despite an adverse financial climate and lows in the property market, Lend Lease was to produce profits for its shareholders. The firm did not retain its own publicity department, but worked quietly and expertly at all its projects, so much so that it prompted the Financial Times to comment, “Unlike many prominent Australian companies, it [Lend Lease] attracts little publicity and even less adverse comment from analysts.”

In 1971 Bredero’s sold its shareholding in Lend Lease, and J. DeVries, a founding director of Lend Lease, retired from the board. W.M. Leavey, managing director of Lend Lease, replaced him. S.G. Hornery became managing director of Civil & Civic, with R.G. Robinson as chairman.

In 1978 Dusseldorp commented in the annual report, “In the conditions which have prevailed, to have obtained one million dollars worth of business every working day represented an extraordinary effort by everyone in the group.” It was also the year in which employees became the largest shareholding block, holding 26 percent of the shares.

Lend Lease’s success—during one of the greatest slumps in the property market—lay in its concentration on earnings and cash flow rather than ownership of assets. It acted as a service corporation. It also stuck to a policy of refusing to undertake construction unless an end-buyer was in place.

New Chairman Leads Group Into the 1990s

In 1988 Dusseldorp retired as chairman and was succeeded by S.G. Hornery. Dusseldorp left a corporation in which 30 percent of all projects were planned, designed, built, fitted, financed, managed, and refurbished for their economic life. It was a company with novel staff ownership schemes, well-tended links with investors, and numerous corporate sponsorships. Dusseldorp cultivated good relations with employees, shareholders, and local communities alike.

Hornery also made a mark on the firm bringing in insurance and related financial services to the group by acquiring MLC. Lend Lease was able to provide, through MLC, savings, mortgage investment, and superannuation as well as life and general insurance products which would cover its clients from cradle to grave. The financial services division proved a shrewd diversification for the early 1990s, contributing nearly half of Lend Lease’s after-tax profit by 1991. The conglomerate’s 1993 acquisition of a minority stake in Australia’s oldest bank, Westpac Banking Corp. was interpreted by some analysts as a step toward its goal of becoming that country’s largest financial services company. Lend Lease would, however, begin phasing out their stake in Westpac by 1996.

During the 1990s, Hornery’s objective for the group of companies will be steady and continuous growth through extending MLC’s offshore investments and developing global property investment capability. The company’s property investment funds focused on emerging markets, especially in Asia. By 1995, it had funds targeting Thailand, Indonesia, and other Asian nations. International expansion of Lend Lease’s construction interests continued as well. The corporation acquired U.S.-based Yarmouth Group, Inc., in 1993 and purchased a minority stake in Hoyts Theaters cinema chain with locations in the United States, Australia, and New Zealand, in 1994. In addition to his company’s new business interests, Chairman Hornery also remained committed to continuing the company policy of enhancing the urban environment and playing a leading role in changing Australia’s cities for the better.

While Lend Lease’s sales declined from A$1.7 billion in fiscal 1990 to A$1.5 billion in 1995, the company continued to add to its 20-year record of increasing after-tax profit, which grew from A$160.5 million to A$260 million during the first five years of the decade. The company reported revenues of A$2.05 billion in 1996 as well as another increase in profits despite a declining Australian property market. As it approached the 21st century, Lend Lease was intent on succeeding in an increasingly competitive industry and on becoming a truly global concern.

Principal Subsidiaries

Civil & Civic Pty. Ltd.; Lend Lease Property Management Pty. Ltd.; Lend Lease Corporate Services Ltd.; Lend Lease Development Pty. Ltd.; Lend Lease Interiors Pty. Ltd.; Lend Lease Property Funds Management Ltd.; Lend Lease Property Investment Services Ltd.; Lend Lease Residential Pty. Ltd.; Lend Lease Management (NSW) Pty. Ltd.; The Lend Lease Design Group Ltd.; Civil & Civic (NZ) Ltd. (New Zealand); Lend Lease Asia Holdings Pte. Ltd. (Singapore); Lend Lease Asia Pty. Ltd.; Lend Lease International Holdings Ltd. (United Kingdom); Lend Lease Corporation Ltd.; Lend Lease (New Zealand) Ltd. (New Zealand); Lend Lease Advisor Services Ltd.; MLC Client Services Ltd.; MLC Investments Ltd.; Lend Lease Corporate Services Ltd.; Lend Lease Corporate Services Asia Pte. Ltd. (Singapore); Lend Lease Custodian Pty. Ltd.; Lend Lease Finance International Ltd.; Lend Lease Capital Services Asia Pte. Ltd. (Singapore); Lend Lease Capital Services Ltd.; Lend Lease Project Finance Pty. Ltd.; Lend Lease Securities & Investments Pty. Ltd.; Lend Lease Asia Water Pty. Ltd.; Lend Lease Finance Ltd.; Lend Lease Learning Pty. Ltd.; MLC Computer Pty. Ltd.; Serenia Pty. Ltd.; Staff Shares Pty. Ltd.; The MLC Ltd.; City Centre Development Ltd.; Lend Lease Estates Pty. Ltd.; Limosa Pty. Ltd.; Limosa Unit Trust.

Further Reading

Harris, Mike, “Oz’s Hoyts Breaking Chains: Firm Selling Cinema Franchises to Frisco Bank, Aussie Investor, “Variety, ” September 12, 1994, p. 29.

“Lend Lease’s Morschel Resigns as Top Officer, Wall Street Journal, March 8, 1995, p. 4B.

Murdoch, Blake, “Hoyts Confirms Theaters Sale,” Hollywood-Reporter, September 13, 1994.

Murphy, Mary,Challenges of Change: The Lend Lease Story, Sydney: The Pot Still Press, 1984.

Rudnitsky, Howard, “A Hand from the Grave,” Forbes, May 11, 1981, pp. 83-84.

Witcher, S. Karene., “Australian Sells Westpac Stake to Lend Lease, Wall Street Journal, May 12, 1993, p. B3B.

—Anastasia N. Hackett

—updated by April Dougal Gasbarre

Lend Lease Corporation Limited

Level 46
Australia Square Tower
Sydney NSW 2000
Australia
(02) 236-6111

Public Company
Incorporated: 1958
Employees: 7,019
Sales: A$1.69 billion (US$1.31 billion)
Stock Exchanges: Australia New Zealand

Lend Lease Corporation, Australia’s leading real estate development corporation, with branches and subsidiaries throughout the world, owes its resounding success to the unorthodox methods of its founder Gerard Dusseldorp. From its inception the company has been an integrated property service and—in recent years—a financial service which presents to its clients and customers a “one-stop” service in the property market.

In the late 1940s, Australia was basically a nation of sheep farmers. The country, with a population of 8.3 million, was undeveloped and maintained a colonial dependence upon Europe and other nations for many of the basic necessities of life, in exchange for wool. World War II showed the danger of such an existence, and the nation was very much in favor of developing its own natural resources and skills.

Australia’s dry climate made a source for a plentiful supply of water necessary to the development of the nation. The solution lay in a project called the Snowy Mountains Scheme, which entailed the taming of a snow-fed alpine river by the interruption of its seaward course. The river would then be sent through 130 kilometers of tunnels through a mountain range and a system of holding reservoirs to join rivers on the other side, 900 meters below. This design, however, was beyond the resources of this relatively small nation. What became known as the Snowy Mountains Hydro-Electric Authority (SMHA) was the trigger that implemented Australia’s most ambitious immigration program. A government mission traveled worldwide, recruiting tradesmen, engineers, and laborers.

In Amsterdam the call was answered by Bredero’s Bouwbedrijf of Utrecht (Bredero’s) and The Royal Dutch Harbour Company. Bredero’s sent a 30-year-old engineer, Gerard J. Dusseldorp, to Australia on a fact-finding tour for the Dutch construction firm. What he discovered was a country ripe for development and about to enter a period of great growth and prosperity. His report convinced the two firms to embark on a joint venture. They formed a company called Civil & Civic Contractors and put Dusseldorp in charge. Its first assignment was to supply and erect 200 prefabricated houses for the Snowy Mountain project. The 35 workers for the job were recruited in Holland by Dusseldorp and brought to Australia under the liberalized immigration laws.

Civil & Civic completed its first assignment within 15 months, but out of the SMHA came further jobs for the fledgling company. Bridges, houses, flats, and hospital extensions were added to the projects the company was to complete in the area of Cooma and Canberra. As a result, a locally engaged work force was soon growing around the nucleus of the original 35 Dutch workers.

At all times, however, G.J. Dusseldorp, who was by then Civil & Civic’s managing director, was looking for a way to expand the company’s operations. He focused on Sydney, Australia’s largest city, which was about to experience the largest building boom in its history.

Dusseldorp, as a developer, was constantly seeking a better way to do things, not only to boost company profits, but also to set standards of excellence within the industry. For him, the traditional system of tendering was, in his words, “a gushing stream of waste.” When other firms were unreliable, the contractor had to shoulder the burden of their mistakes. He wanted to establish a system that was to remain the foundation of the company’s philosophy—undivided responsibility for any project from start to finish.

Civil & Civic had a chance to try out the new system when a small project in Sydney in 1953 was presented to the company. Dusseldorp was determined to prove that there was a better way to handle a construction project. An oil refinery needed a gatehouse to be added to a new plant currently under construction. Civil & Civic designed and built it within six weeks. It was the firm’s first design and construction project.

In 1954 Dusseldorp’s chance had come to put Civil & Civic on the map by building Sydney’s first concrete skyscraper. He was determined, however, to become the sole entrepreneur, thus ensuring complete control over the project. He wanted to take over the option, the council-approved plans, and the services of the architect and engineer. All that Dusseldorp now lacked was the money.

He approached Bredero’s in Holland for a £100,000 loan which he was refused, but the president of the Reconstruction Bank of Holland was present at Dusseldorp’s presentation. He was impressed with Dusseldorp’s style, determination, and confidence, and backed the loan.

When building work began Dusseldorp was faced with yet another problem besetting the construction industry—industrial action by the workers’ unions. He therefore proposed to the unions an agreement which among other things would include a productivity bonus. Although viewed at first with skepticism, it proved a great success as building workers began to feel like valued employees.

Caltex House was finished months ahead of the original schedule and established Civil & Civic as a leading contractor. Now the company could sell itself as a new composite building service which operated in conjunction with leading architects and engineers. Such a service was designed to eliminate delays and reduce costs.

Yet Dusseldorp was not satisfied. He was still searching for a better package to present to prospective buyers or leasers. During the building boom of the early 1960s there was a great need for new construction of all kinds. Many companies, as a result of their own success, were being forced to build larger premises. The buying of larger premises inevitably meant tying up capital that was needed for business operations. Dusseldorp concluded that what most businesses were looking for were premises which they could lease.

He also saw a need for cooperative projects which would bring together people with a common interest, such as doctors who needed professional consulting rooms. Such professionals would not be able to finance such projects independently. Dusseldorp had the solution.

He decided to float a finance and investment company and go to the Australian public for funds to finance Civil & Civic projects on completion, thus gaining entrepreneurial control over their projects. In April 1958, Lend Lease Corporation Limited was established and floated on the stock exchange with Civil & Civic holding 40% of the shares.

This original share issue was floated to finance the construction of a seven-story building containing professional consulting rooms. The deal was that North Shore Medical Centre Pty, Ltd., which owned the land, had the right to occupy or nominate the occupant of specified areas in the building. Lend Lease was to take up the whole of the issued capital of the company on completion of the building and would then sell the professional suites on term contracts over varying periods, while retaining part of the space in the building as an investment—in other words, lending and leasing.

It was not long before Lend Lease began to acquire its own sites, plan the development, and construct buildings in cooperation with Civil & Civic. They were set to provide and complete development of large-scale projects of real estate.

Both Civil & Civic and Lend Lease were out to gain prestige and publicity. They began to tender for projects that would put them in the public eye. Buildings such as the Academy of Science in Canberra would win them the Sulman prize for architecture. It was not until February 1959, however, that Lend Lease became a household name. It was at that time that the company contracted to build stage one of the Sydney Opera House.

Civil & Civic and Lend Lease were not ordinary construction outfits. The management of both organizations had an interest in urban planning and renewal. Plans for new building sites would always include open areas with fountains and plazas so that beauty as well as commerce might be enjoyed.

As the organization grew, it also had to change. Between 1959 and 1962 Lend Lease acquired its original sponsor, Civil & Civic, as well as six companies whose manufactured products were useful to their construction business. These companies supplied Lend Lease with elevators, windows, and building materials. The company also bought a ski resort and a motel chain. It was set to change from the role of financier of other people’s projects to that of developing and managing real capital assets for long-term property investors.

In June 1960 a subsidiary company was formed to take control of Lend Lease’s joint operations with Civil & Civic. The parent company formulated policy and provided specialist advisory skills. It also developed new projects and raised the money to carry these projects out. The subsidiary, Lend Lease Development Pty. Ltd., selected and purchased the sites, dealt with the authorities, and managed the design and construction of the site, as well as the sale or lease of projects.

Lend Lease was now involved in a multitude of projects from commercial buildings to suburban housing to recreational sites. The group was expanded to include 14 operating companies. Their presence was virtually ubiquitous in Australia, especially in the cities of Sydney, Canberra, Melbourne, Launceston, Brisbane, and Perth.

In May of 1968 one of Lend Lease’s largest projects, Australia Square, was officially opened by the Duke of Edinburgh. It won the Sulman Award for Architectural Merit, and the Civic Design Award of the New South Wales chapter of the Royal Australian Institute of Architects for a work of oustanding design.

By 1971 property values in Australia were peaking. Dusseldorp could see that the bottom was soon going to drop out of office development market and it was decided that Lend Lease would end its work in this field. It would instead turn its attention towards shopping centers. The shift in activities was not unusual for this corporation. The key to its success was its ability to keep its finger always on the pulse of change.

Lend Lease continued to retain a long-term interest in properties developed without long-term capital investment, and to be free of fluctuations in the property market through public subscription and independent property trusts. Lend Lease was the first developer to go public and to form in 1971 General Property Trust, a publicly owned real estate trust to hold its properties.

On June 30, 1971, G.J. Dusseldorp’s contract with Bredero’s, which made him available as principal executive of the group, expired. Dusseldorp agreed to be retained until June 30, 1975, with a renewable clause thereafter. The new agreement allowed Dusseldorp to have interests outside Australia. Dusseldorp wanted to try his style of business in the United States. Through its subsidiary, U.S. Lend Lease, established in 1972, formed International Income Property (IIP).

Despite the multitude of activities in which Dusseldorp and his team were involved, he was nonetheless paving the way towards his own retirement by grooming his executives for future management. His contributions to the success of Lend Lease were considerable. Although he surrounded himself with a team of some of the best people in the business, there is no doubt that the inspiration for the projects, as well as the new ways of handling development and finance, all sprang from the mind of Dusseldorp. His aversion to borrowing kept the firm’s debts below 50% of its total capital, a low figure compared to those of rival developers. Year after year, despite an adverse financial climate and lows in the property market, Lend Lease was to produce profits for its shareholders. The firm did not retain its own publicity department, but worked quietly and expertly at all its projects, so much so that it prompted the Financial Times to comment, “Unlike many prominent Australian companies, it [Lend Lease] attracts little publicity and even less adverse comment from analysts.”

In 1971 Bredero’s sold its shareholding in Lend Lease, and J. DeVries, a founding director of Lend Lease, retired from the board. W.M. Leavey, managing director of Lend Lease, replaced him. S.G. Hornery became managing director of Civil & Civic, with R.G. Robinson as chairman.

In 1978 Dusseldorp commented in the annual report, “In the conditions which have prevailed, to have obtained one million dollars worth of business every working day represented an extraordinary effort by everyone in the group.” It was also the year in which employees became the largest shareholding block, holding 26% of the shares.

Lend Lease’s success—during one of the greatest slumps in the property market—lay in its concentration on earnings and cash flow rather than ownership of assets. It acted as a service corporation. It also stuck to a policy of refusing to undertake construction unless an end buyer was in place.

In 1988 Dusseldorp retired as chairman and was succeeded by S.G. Hornery. Dusseldorp left a corporation in which 30% of all projects were planned, designed, built, fitted, financed, managed, and refurbished for their economic life. It was a company with novel staff ownership schemes, well-tended links with investors, and numerous corporate sponsorships. Dusseldorp cultivated good relations with employees, shareholders, and local communities alike.

Hornery also made a mark on the firm, overturning Dusseldorp’s international expansion plans and bringing in insurance and related financial services to the group by acquiring MLC. Lend Lease was able to provide, through MLC, savings, mortgage investment, and superannuation as well as life and general insurance products which would cover its clients from cradle to grave.

During the 1990s, Hornery’s objective for the group of companies will be steady and continuous growth through extending MLC’s offshore investments and developing global property investment capability. He is also committed to continuing the company policy of enhancing the urban environment and playing a leading role in changing Australia’s cities for the better.

Principal Subsidiaries

Australian Funds Management; The MLC Limited; MLC Life; MLC Insurance; Lend Lease Development; Lend Lease Commercial; Lend Lease Retail; Civil & Civic; Lend Lease Interiors; Lend Lease International plc.

Further Reading

Murphy, Mary, Challenges of Change, The Lend Lease Story, Sydney, The Pot Still Press, 1984.

—Anastasia N. Hackett