The sale of Lendlease鈥檚 international operations has already begun, with a deal agreed for its US East Coast construction business.
Sale of its UK operation聽鈥� the old Bovis Construction business, acquired by Lendlease in 1999 鈥� is expected to be completed within the next 18 months.
Lendlease Europe made a loss of 拢124m after tax in the year to 30th June 2023 and a loss of 拢222m the year before that.聽
Lendlease Group made a loss of AU$232m (拢121m) after tax in fiscal 2023 on revenue of AU$10.4bn.
The group result was hit by a聽$295m (拢154m)聽gross provision for what the board described as "retrospective, industry-wide action by the UK government"聽鈥� in other words, the post-Grenfell dangerous cladding 肠濒别补苍-耻辫.听
Lendlease chairman Michael Ullmer said: 鈥淲e recognise that our security price performance and 聽securityholder returns have been poor as we have faced structural challenges and a prolonged 聽market downturn. We need to take significant action at an accelerated pace to deliver value for our 聽securityholders, capital partners and customers.鈥�
Lendlease has agreed terms with US construction firm Consigli Construction Co for the sale of its US East Coast construction operations, 聽including 45 current, under contract and pre-construction projects. As part of the sale, the majority of Lendlease鈥檚 US construction workforce will transition to Consigli. The deal is expected to complete in the first half of 2025.
聽Lendlease chief executive Tony Lombardo said: 鈥淭hrough the decisive actions announced today, a new Lendlease is emerging. One that is firmly anchored in the very best of our proud legacy, but less complex, more focused and fit for purpose. This new Lendlease will be more easily understood by our people and customers, and transparent and predictable for securityholders.
鈥淏y reshaping the portfolio, concentrating on our core competencies in markets where we have proven we have the right to play, and the competitive advantage to win, the financial and operational risk profile will be lower, and we believe the quality of our earnings ultimately higher and more sustainable.
鈥淚mportantly, we do not launch this strategy from a standing start. Significant work has already been undertaken and we anticipate making further positive announcements in the near-term on our progress. We are well advanced on several transactions, and we have clear plans of action to implement the necessary change to reorient the organisation. We are confident in the strategy and have conviction in how we will execute."
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