Strategic reset gains pace with UK divestment and growing investor appetite in core markets
Lendlease (ASX: LLC) has taken another significant step in its strategic refocus, completing the sale of its UK Construction business to Atlas Holdings, marking the final chapter in its exit from international construction.
This sale, which follows the earlier divestments of its US and Asian construction arms, is part of Lendlease’s strategy announced mid-2024 to streamline operations and sharpen focus on its Australian business and global investment management platform. Financial impacts remain in line with previous guidance from 2 January 2025.
Group CEO Tony Lombardo says the move supports the company’s commitment to simplify and de-risk the business:
“The exit of international construction builds on our progress to simplify Lendlease as we look to lower our risk profile and increase securityholder returns.”
Global capital continues to flow into Lendlease platform
In a separate announcement, Lendlease revealed further momentum in its investment management business, with two new Japanese partners—Sotetsu Urban Creates and Yasuda Real Estate—taking a 20% stake in London’s 21 Moorfields development.
The premium-grade office asset was sold at book value for £64 million (A$131 million). Lendlease retains a 5% co-investment and will continue as both investment and asset manager, aligning with its capital-light model and target of holding a 5–10% stake in managed assets.
This transaction follows a string of recent wins, including $1.5 billion in new investment mandates across Australia and Asia and the rapid growth of Vita Partners, Lendlease’s life sciences JV, which now manages around $2 billion in assets in its first year.
Looking ahead
Lendlease is continuing to recycle capital, simplify its business, and unlock growth in higher-return segments. The company remains focused on increasing returns to shareholders, reducing risk, and capitalising on its strengths in asset management and urban regeneration.
“The introduction of two new global capital partners… speaks to the quality and strength of Lendlease’s investment management platform and the opportunities we create for our investors,” said Lombardo.
