Lendlease has announced the successful completion of the sale of 12 Australian master-planned Communities projects to Stockland Corporation Limited and its capital partner, Supalai Australia Holdings, for a total consideration of $1.06 billion.
Transaction Highlights
- Sale Details:
- Includes 12 master-planned Communities projects.
- First instalment of $515 million received today.
- Further payments of approximately $450 million by 31 January 2025, with the remainder by 30 June 2025 (subject to adjustments).
- Capital Recycling Progress:
- This transaction contributes to Lendlease’s $1.8 billion progress toward its $2.8 billion FY25 capital recycling target.
- Additional transactions, including the sale of TRX Retail (Malaysia), China Senior Living, and Australian Retirement Living, are ongoing.
Strategic Impact
Lendlease CEO Tony Lombardo stated:
“This sale is a significant milestone as we simplify our operations, strengthen our balance sheet, and focus on high-return Australian and international investments. Our capital recycling efforts are vital to achieving a leaner, more profitable business.”
Outlook for FY25
- Earnings Guidance:
- Group Earnings Per Security (EPS): 54 to 62 cents.
- Gearing to trend down significantly in the second half of FY25, targeting the upper range of 5-15%.
- Adjustments to the Transaction:
- Certain additional land parcels excluded due to unmet conditions.
- FY25 profits expected to be minimally impacted, with compensating opportunities likely in the second half.
- Simplification and Focus:
- The UK Construction operations sale is progressing as part of broader efforts to streamline operations and improve profitability.
Conclusion
The successful sale of the Communities projects marks a pivotal step in Lendlease’s strategic transformation. By reallocating capital and simplifying its portfolio, the company is better positioned to achieve its long-term goals of higher profitability and increased shareholder returns.
