Lendlease is leaving the UK and selling its overseas construction businesses to focus on its operations in Australia.
The New South Wales-based multinational has unveiled a comprehensive restructure which aims to free AUD 4.5 bn (£2.35bn) of capital to pay down debt and enhance shareholder value.
In a strategy update published yesterday, Lendlease said that regional management structures will be removed over the next 12 months, and its construction business will be focused solely on Australia by the second half of 2025 share prices with the firm’s stock has lost around half of its value since the pandemic.
The 47-page strategy document also mentioned low overseas construction earnings of just 0.6% and “overweight, long-dated” projects that have been impacting security holder returns.
Delays have hit several of the firm’s biggest schemes in the UK, including the £429m 120 Fleet Street job in the City of London, which has been stalled by ongoing discussions with its Chinese developer and the £1.9bn Smithfield scheme in central Birmingham which has undergone several redesigns.
Lendlease chairman Michael Ullmer admitted that security holder returns had been “poor” amid structural challenges and a prolonged market downturn. “We need to take significant action at an accelerated pace to deliver value for our securityholders, capital partners and customers,” he said. “We have announced the blueprint to position Lendlease for success, focusing on our core strengths and competitive advantages. We have thought very carefully about the necessary strategic refocus and made some tough decisions.”
The firm said it would hold onto its international investment platform, the only remaining division active outside of Australia following the restructuring.
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