SYDNEY, AUSTRALIA-Lend Lease Corporation Ltd. is selling its Housing and Community Investment business to Municipal Mortgage & Equity LLC for US$102 million.

The sale price compares to the book value of HCI’s business of approximately US$94 million. Transaction costs are expected to come in around US$4 million. The sale is scheduled to close June 30 such that it will not impact Lend Lease’s 2003 financial year operating result.

Lend Lease will retain HCI’s working capital and other assets existing at the date of closing, which include tax credit properties awaiting placement (US$93 million as of Dec. 31, 2002), advances to developers (US$18 million as of Dec. 31, 2002) and other items (about US$19 million net as of Dec. 31, 2002). The majority of these items are expected to be realized over the next 6-12 months.

Lend Lease’s HCI business is provides tax credit investments to corporate investors. The low-income housing tax credit was created to provide financial incentives for the development and/or rehabilitation and preservation of privately owned affordable rental housing. Investors in affordable housing receive US federal tax credits for 10 years.

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