Lendlease Group (ASX:LLC) is poised to complete the previously disclosed sale of 12 Australian Communities projects to residential developer Stockland (ASX:SGP) and its capital partner Supalai Australia Holdings for AU$1.06 billion after meeting certain transaction conditions, according to a Friday filing with the Australian bourse.

The transfer of projects along with the first payment of AU$515 million is expected to be completed Friday, the filing said. An additional payment of about AU$450 million is scheduled for Jan. 31, 2025, and the remaining proceeds for June 30, 2025.

The sale contributes to Lendlease's capital recycling target of AU$2.8 billion for fiscal 2025, bringing the total to AU$1.8 billion so far.

The real estate company noted that some additional land parcels, which were initially part of the sale, will not be included in the transaction due to unmet conditions.

The exclusion of these lots from the transaction is expected to impact fiscal 2025 profits, but the company's earnings guidance for the year remains unchanged, with compensating opportunities expected in the second half of the year, the filing added.

Lendlease is also progressing with other capital recycling initiatives, including the sales of its TRX Retail business in Malaysia, China Senior Living, and Australian Retirement Living. Additionally, the sale of its UK Construction operations is ongoing.

The company's earnings guidance for fiscal 2025 remains at AU$0.54 to AU$0.62 per security, the filing said.

Lendlease Group and Stockland shares each fell 1% in recent Friday trade.

Price (AUD): $7.05, Change: $-0.05, Percent Change: -0.63%