Lend Lease is projecting a 47% fall in earnings.

The company told the Australian Stock Exchange that its profit after tax in the year to June was expected to reduce to A$265.4m (£125m) compared with A$497.5m (£235m) in 2007.

It said: "Lend Lease has taken the prudent step of writing down the carrying value of Inventory in its UK Communities business, Crosby Lend Lease by A$121.5 million pre-tax. In addition, given continued expansion in retail capitalisation rates, Lend Lease's profit and loss statement will include a reduction in Property Investment Revaluations of A$60.2 million after tax for the year."

Lend Lease is also struggling to raise financing for its Olympic Village project and may need more government cash to avoid falling behind schedule, David Ross, an adviser to London City Mayor Boris Johnson, said in a report June 18. The developer is building 3,300 apartments that will house 15,000 athletes and coaches during the 2012 games.

The company, which expects to have a financing deal in place by the end of the year, today reiterated it would meet the construction target.

Lend Lease will provide a full trading update at its full year results later this month.