Already a subscriber?Lendlease has swung to a loss of more than $1.5 billion as the real estate developer wears the cost of a major shift in strategy, one which will eventually end most of its international operations as it promises a return to profitability.
In May, Lendlease said it would end all international property development and sell its overseas construction divisions.Lendlease, the country’s largest developer, builder and real estate investor, has faced significant investor pressure to overhaul its operations. In May, in response to activism from David Di Pilla’s HMC Capital, John Wylie’s Tanarra Capital and Allan Gray, Lendlease agreed to end all international development and sell its overseas construction division.
Mr Lombardo said Lendlease had made “significant progress towards our target of recycling $2.8 billion of capital in , with further cost savings realised as a result of our simplified management structure”. But $1.3 billion of the assets already sold include its masterplanned communities business, purchased by Stockland, which has been delayed by the Australian Competition and Consumer Commission.Those asset sales pushed losses from $232 million to just over $1.