Lendlease Group (Lendlease, the Group, ASX: LLC) is a global real estate and investment management firm with a diversified portfolio spanning property development, construction, infrastructure, and long-term investment platforms. Headquartered in Sydney and listed on the Australian Securities Exchange, Lendlease operates across Australia, Asia, the Americas, and Europe. The Group is currently executing a multibillion-dollar capital recycling strategy aimed at simplifying its structure, reducing overheads, and reallocating capital to core business lines with higher long-term return potential.
Completion of Capella Sale Strengthens Balance Sheet and Refocuses Strategic Priorities
On 20 June 2025, Lendlease confirmed it had completed the divestment of Capella Capital to Japan’s Sojitz Corporation, following the satisfaction of all regulatory and contractual conditions. Capella Capital is a specialist infrastructure advisory and asset management firm with interests in public-private partnerships. The sale forms part of a broader simplification strategy first outlined by Lendlease in mid-2023.
The transaction generated $235 million in gross proceeds and is expected to deliver an estimated post-tax profit of $70 million, consistent with Lendlease’s prior guidance disclosed on 31 January 2025. CEO Tony Lombardo noted that the completion aligns with the Group’s objective to “become less complex, more focused and ultimately more profitable,” reiterating that proceeds would be redeployed to reduce funding commitments and support priority growth segments.
This deal follows several other recently completed asset sales as part of Lendlease’s $2.5 billion capital recycling initiative, which now totals over $2.52 billion in announced or completed transactions. Notable components of the program include the sale of the Communities business for $1.06 billion, military housing assets for $516 million, and life sciences holdings for $170 million. The Group is also targeting the formation of a UK development joint venture and several other divestments over FY25 and FY26.
The Capella divestment allows Lendlease to reduce exposure to advisory and PPP investment activities, which are no longer considered core to its forward strategy. By narrowing its business focus, Lendlease seeks to improve earnings quality and return on invested capital, particularly through recurring revenue streams in real estate and infrastructure investment management.
Implications for Outlook and Capital Allocation Strategy
The completion of the Capella Capital sale marks further progress in Lendlease’s multi-year transformation plan, which aims to increase operational efficiency and focus capital on scalable core platforms. According to the Group’s updated capital recycling appendix, cumulative announced or completed sales now exceed $2.52 billion, with total profits estimated between $443 million and $463 million post-tax.
The Group continues to evaluate opportunities for divestment and joint ventures, including a UK Development JV projected to generate up to $300 million in proceeds and an additional $240 million in “other” asset sales, such as Elephant Park land parcels and completed inventory, expected to finalise during FY25.
While Lendlease did not update earnings guidance in this announcement, the proceeds from Capella are anticipated to strengthen the Group’s balance sheet, reduce net debt, and support shareholder return initiatives. The sale may also contribute positively to FY25 operating profit after tax (OPAT), depending on timing and associated costs.
This transaction follows a broader trend among ASX-listed infrastructure and property groups seeking to refocus portfolios amid rising capital costs and shifting investor preferences. With elevated interest rates and subdued global development activity, firms like Lendlease are increasingly reallocating capital to recurring-fee platforms, capital-light partnerships, and domestic pipeline growth.
