How do we accelerate these

futures?

Thank You

The New Urban Enterprise

Andrea RuckstuhlHead of Continental Europe

1. World Urbanization Prospects: The 2018 Revision, United Nations.2. Remaining estimated development end value.3. Urbanisation development projects with end value >$1b.4. McKinsey Global Institute: Bridging Infrastructure Gaps – Has the World Made

Progress? October 2017. Includes some Group Research calculations.5. Cumulative data from FY12 to FY18.

6. Asset & Wealth Management Revolution: Embracing Exponential Change, PwC 2017.7. Lendlease managed Australian Prime Property Fund Commercial ranked first out of

850 respondents in the 2017 Global Real Estate Sustainability Benchmark.8. World Population Prospects: The 2017 Revision, United Nations.9. RE: Tech: Real Estate Tech Annual Report 2017.

By 2030, over 60% of the world’s population is expected to live in urban areas1

• $71.1b Urbanisation pipeline2

• 18 major urbanisation projects3

across 10 gateway cities

Global infrastructure spending is estimated to rise to an average of US$5.1 trillion per year between now and 20354

• A leading tier 1 Engineering business in Australia

• c.$10b PPPs secured5

• Emerging telecommunications infrastructure business in the US

Global assets under management are forecast to rise from US$85 trillion in 2016 to US$145 trillion by 20256

• 16.6% annual growth in Funds Under Management last five years

With two thirds of the world’s population living in urban areas by 20501, the built environment faces increasing challenges

• Recognised by GRESB as an international leader7

• Leader in environment, communityand employee wellbeing initiatives

Internationally, people aged 60+ are projected to grow three times faster than the overall population (2.4% vs 0.8% pa) in average annual terms between 2015 and 20508

• Operate one of the largest Retirement Living businesses in Australia

• Seeking to establish a scale platform in China. In FY18 secured first senior living project in Shanghai

Global investment in real estate technology start ups has grown from US$1.8b in 2015 to US$12.6b in 20179

• A pioneer of new deliverytechnologies e.g. Cross Laminated Timber, digital design, pre-fab, online sales channels; a leader in new safety initiatives

$29.7b Development pipeline1

$12.4b Construction backlog $22.4b FUM$2.7b Investments

$5.2b Development pipeline1

$6.3b Construction backlog$0.3b Investments

$29.3b Development pipeline1

$1.5b Construction backlog$1.4b FUM

$6.9b Development pipeline1

$0.9b Construction backlog$6.3b FUM $0.4b Investments

1. Remaining estimated development end value.

4LENDLEASELENDLEASE

Our international experiences

Image: Barangaroo South, Sydney

"Companies must start justifying their worth to society, with greater emphasis placed on environmental and social

impact rather than straight economics."Dick Dusseldorp, Founder of Lendlease, 1973.

SOC

IAL

IMPA

CT

Enhancing social value, the journey so far

More traditional approaches including:Pushing the boundaries of environmental sustainability –Plastic free @ Barangaroo project, all projects to be top 2 rating (Gold – Platinum)

To more ambitious one and in particular I will touch on:• OGII - Ospedal Grando Impact Investing• MIND – Milan Innovation District

Launching large scale business in commercial CLT

Working with local communities for programmes and for civic involvement including the creation of community day and the Lendlease Foundation programme

Dealing with inclusion in our communities, with the largest programme of ex offenders in UK called Be on Site and now the first Partnership between private and public into job continuity for offenders in Italy called 2121 programme

SOC

IAL

IMPA

CT

Ospedal Grando Impact Investing

Loan at market rate from private banksLoan at market rate from private banks

Loan at below market rate from EIBLoan at below market rate from EIBImpact investing

vehicle

New impact fundThe Ospedal

Grando Impact Investing (OGII)

savings

NEW GROUND-BREAKING STRATEGY AND PPP MODEL FOR THE FINANCING OF INFRASTRUCTURE PROJECTS:

Financing structure of the PPP for the redevelopment of the €250m, 1,000 bed hospital in Treviso (Italy) included comprehensive, dynamic and integrated impact investing strategy

Referred as a EU success story by: Listed as one of the 100 best practices worldwide by:

SOC

IAL

IMPA

CT

Ospedal Grando Impact Investing

Fig. Agents and flows of the impact investment policy

SOC

IAL

IMPA

CT

MIND Project the PlaceMIND is a new innovation district built on the site of the 2015 Milan Expo. It will be an innovation ecosystem, catalyst for social and economic growth. It will create new neighbourhood of Milan, sustainable open and safe, able to attract talent from all the world.Impact innovation for a better urban life

The vision for MIND is to capitalise on the success of Expo 2015 and place Milan on the map of the world’s gateway cities. PlusValue is currently supporting Lendlease in developing an social impact strategy and action plan.

This will ultimately enhance the quality of life locally and promote the country’s sustainable economic development and international growth, through an infrastructural platform which will enable scientific, economic and social innovation

Key Statistics:1M m2

60-70k people

MIND is conceived as a truly integrated mixed use community, with human collisions at its core. The scale of the development allows for the provision of strategically located high end shared facilities, services and amenities that incentivize pedestrian mobility enhancing user experience. In return this approach allows to maximize real estate product efficiency therefore strongly reducing operating costs for the end user.

SOC

IAL

IMPA

CT

MIND Project – Evolving Masterplan – Functional Mix and shared facilities

UR

BAN

REG

ENER

ATIO

NA new approach to Urban Regeneration

• An Hybrid PPP structure defining new ways of collaboration between public and private• An innovative planning instrument that includes infrastructures as proactive and dynamic

answers to evolving needs• Physical space as an enabler of the community and open innovation: the common ground• Ecosystem approach embedded in the regeneration plan to promote a human-centred

innovation: targets are economic and technological outcomes together with social and environmental ones

• Digital design complement and upgrade physical design: former assures dynamic response to evolving needs of stakeholders by retrofitting the latter

• Targeting new property products and models via improving time, design and user’s models of traditional real estate to enable flexibility and affordability over time, both for investors and for users

• A regeneration project as a platform to attract investors (institutional investors, venture capital, impact investors, etc) and a curated marketplace where investors, entrepreneurs, and customers meet to test and implement the solutions of future urban living

WH

ERE

NEX

TWhat and where next?

Spaces are getting more fluid

“You can work anywhere but you would rather do in a nice place…”: Digital innovation transforms professional and private life – even regaining free time- hence the importance of the place making

People more focused on experience rather than individual ownership

Health and wellbeing drive success of future cities: public dimension of life overtakes the private one for people’s well-being

Connectivity, services and infrastructures - including green and cultural ones - are becoming the top value assets in cities, strengthening their competitiveness and attracting diverse human talents from all over the world

Digital technologies are enabling and pervasive but threat to individual privacy and agency: maximising the potential of technology for cities and citizens is a must as much as protect freedom and rights of individuals and communities

THE

UR

BAN

EN

TER

PRIS

EThe Urban Enterprise

The Urban Enterprise redefines ownership and participation of all stakeholders in the project for the future city hence innovation, economic growth and urban living for the whole community • The foundation are enterprising public institutions, private companies, not for profit

organisations and people which bring together economic growth and social outcomes from design to implementation

• Members of the community – either private or public, individual or organisation – have the opportunity to invest in the real estate project of which they will become the users over the years creating a collective sentiment of ownership and care

• The success of the real estate and the optimisation of the financial structure generate returns to be reinvested in the local community sustaining growth and economic innovation: this is a social circular economy

• A bouquet of innovative and dynamic solutions for urban living that can constantly adapt to evolving needs are the define features of space - physical assets are assembled, disassembled and reutilised or modified to always be fit the purpose

• This is an opportunity for the Real Estate Industry that can rethink its role

Thank you for yourattention

November2018

GreenMunicipalFund

OverviewChrisBoivin,ManagingDirector,GMF

Outline

• GMFOverview

•  EcosystemGapsandOpportunities

• GMFFutureDirections

GMFOverview

•  EstablishedMarch31,2000bytheGovernmentofCanada

•  ManagedbytheFCMwithoversightfromINFC,ECCCandNRCan

•  GovernmentestablishedtheGMFasanimportantpolicyinstrument

for:

–  Gainingexperienceinthedevelopmentandexecutionofsustainability

projects,

–  Establishingandsharingbestpracticesandlessonslearned,and

–  improvingtheenvironmentalperformanceofmunicipalinstallations.

GreenMunicipalFund

$900millioninvestedinover1,200projects

sinceinception

$500Million

Initial

Endowment

$125MillionTop-up

Endowment

+ $80MillionRetained

Investment

Returns

+ = $725MillionTotalCurrent

Valueof

Fund

WhatweareallaboutAdvancing innovative solutions to tackle environmental challenges.

Our projects must have: •  Significant

environmental and social benefits

•  A strong business case

Gap-greateroverallreceptivenessfrommunicipalitiesisrequired

GMFGoalsEssentialforscaling

Weneedtocreatetherightmarket

conditionstotransformthesector

GMFApproach–Directandenable

innovationanddriveadoption

CurrentLandscapeforMunicipalFinancialRisk-takingon

Sustainabilityprojects

12

Municipaldirectcontrol,indirect

controlandinfluenceonemissions

Consideration:Municipalitiescandirectlycontribute5%andindirectlycontrol

orinfluence45%oftheemissionssavingsrequired.Theremaining45%requires

collaborationandpartnership.

13

NewPilotFundingOffer(Spring2019)

ImpactArea

Corporate Community

Inno

vatio

n

Technical

Financial

Capacity

Building

ImpactArea

Corporate Community

Inno

vatio

n

Technical

Financial

Capacity

Building

GMFwillpilotabroadeningoftheoffertofundthemosttransformativeprojectsacrossabroaderrangeofinnovationsandimpactareas.

DistributionofFundedProjects(Illustrative)