Lendlease Group (ASX: LLC) is a leading international property and infrastructure group with operations in Australia, Asia, Europe, and the Americas. Founded in 1958 by Dutch immigrant Dick Dusseldorp, the company has grown to become a major player in the construction and real estate sectors.

Headquartered in Barangaroo, Sydney, Lendlease is known for its integrated business model that combines investments, development, and construction to create and manage mixed-use precincts and civic and social infrastructure.

Lendlease’s portfolio includes some of the world’s most recognised real estate projects, such as Sydney’s Barangaroo precinct, Elephant Park in London, and Paya Lebar Quarter in Singapore.

UK Construction Sale & Various Other Sales

On January 2nd, 2025, Lendlease announced that they intended to sell their UK Construction business to Atlas Holdings. Their goal was reported to be simplification of the Group’s business model and focus on growth of Australian operations and International Investment platform.

Lendlease is to receive £35 ($70) million cash consideration including £10 ($20) million deferred until June 2026.

This sale follows a series of project and business sales over the course of Fy24, including 12 Australian Communities projects to Stockland Corporation Ltd and Supalai Australia Holdings, for $1.3 billion at a 20% premium to book value. It was expected at the time of the announcement on 18th December 2023, to contribute $130 to $160 million to FY24 core operating profit after tax (OPAT). Regulatory approval from the Foreign Investment Review Board for the sale was announced November 11th, 2024.

Their other recent sale was US East Coast construction operations to Consigli, which was completed September 16th, 2024. The consideration for this sale was expected to be between $30 and $50 million, and about 400 employees (~90% of Lendlease’s US construction employees), will transfer to Consigli.

Lendlease also sold their US Military Housing business to Omaha Beach Investment Holdings, LLC, for $480 (US$320) million anticipating OPAT of $105 to $120 million in 1h25 and about 150 employees are expected to transfer with the business sale.

On Monday the 1st of April 2025, Lendlease announced that the sale of the UK construction business was completed.

About the Acquirer, Atlas Holdings

Atlas Holdings is a private equity firm with more than 50,000 associates worldwide, that owns and operates a diverse portfolio of businesses across various industries, including manufacturing, distribution, and construction.

Atlas Holdings’ portfolio includes businesses in sectors such as automotive components, energy, logistics, metals, packaging, and pulp and paper. The firm’s investment strategy focuses on acquiring companies with strong potential for growth and enhancing their value through hands-on management and operational expertise.

Lendlease’s Projects & Financial Performance

Despite numerous business and project sales, Lendlease retains many assets including apartments, office buildings, and build to rent venues across Australia, some of which are under construction. Their completed venues are Gurrowa Place Retail & Residential VIC, Blue & Williams Offices NSW, Sydney Place Office & Retail NSW, Town Hall Place Office & Retail VIC, Brisbane Showgrounds Offices QLD and Melbourne Connect Precinct VIC.

The projects that are under construction include One Circular Quay Apartments NSW (UC), Victoria Cross NSW (UC), Melbourne Quarter Office & Retail VIC, Exhibition Place (UC), 899 Collins Street VIC (UC), West Tower VIC (UC), Barangaroo South Residential NSW (UC), Victoria Harbour Apartments (UC) and the Exchange Frankston Hospital Redevelopment Project VIC.

Under their Investment Management global portfolio, they have $49.6 billion funds under management and $3.3 billion in co-investment portfolio, their sectors include an unlisted property trust fund called APPF Commercial focusing on commercial properties; APPF Retail allowing exposure to prime shopping centres across Australia; APPF Industrial comprising of assets in land-rich infill locations; and a multi-sector closed-end fund called Real Estate Partners 4 (REP4).

Their construction operations began in 1950 starting with prefab houses in Cooma NSW. Their construction sectors have evolved since inception to include many sectors such as aviation, commercial, residential, data centres, defence, education, health & life sciences, metro stations, sport and cultural precincts and user experience.

Their revenue has declined over the last five years, increasing only in FY23 to $10.40 billion and falling to $9.41 billion in FY24. Despite this, their EBIT and EBITDA have improved significantly with EBITDA increasing from $143 million FY23 to $453 million in FY24 and EBIT increasing from -$37 million FY22 to +$331 million in FY24.

Their total assets have remained in the range of $17.41 billion to $18.99 billion since FY2018 and total liabilities have increased noting a 13.92% increase in FY23 to a 1.48% increase in FY24. Total equity has fallen from $6.64 billion FY23 to $4.88 billion in FY24 and their capital structure has remained debt focused since 2018.

Investment Management Update

On Monday 1st of April 2025, Lendlease also announced an investment management update detailing the introduction of two new Japanese investment partners, Sotetsu Urban Creates and Yasuda Real Estate. These firms jointly acquired 20% interest from Lendlease in 21 Moorefields which is a premium-grade office in London.

The acquisition included a consideration of GPB64 million ($131 m) and Lendlease retained 5% interest. They also announced the new Life Sciences joint venture has growth ~$2 billion in funds within it’s first year of operation.

Construction Industry & Australian Real Estate Sector

In February 2025, he UK Construction PMI fell to 44.5, down from 48.7 in January, and the lowest level in two years. UK construction output has also declined over the last three years from 9.2% in January 2022 to 0.2% in January 2025, this decline trend is only gradual when compared to the peak output of 72.4% in April of 2021 and a low of -49.9% in April of 2020.

Ultimately this places emphasis on Lendlease’s sale of its UK construction business as it is a struggling industry for the business to operate in.

Lendlease noted in their announcement their intention to focus more on Australian projects. The Australian real estate sector has fallen 7.25% over the last year although it has ultimately rise over five years.

Construction output in Australia has risen QoQ by 0.5% in Q4 2024, much slower than 2% in Q3 2024, and over the last five years peaked at 4.3% in Q1 2023 and was at the lowest -2% in Q3 2020 and Q1 2024. Overall, there has been no upwards or downwards trend in QoQ construction output in Australia but much volatility. GDP from construction in Australia has been increasing since 2020 from $38.1 billion in Q2 2020 to $43.7 billion in Q4 2024.

Lendlease is positioned in a sector and industry that has been struggling over the last few years due to increasing interest rates, however, has generally improved over the span of plus five years.