Lendlease exits international construction markets

Aerial view of the Bolte Bridge and Melbourne docklands at sunset - Lendlease is refocusing on the Australian market

The announcement was made as part of a company overhaul as it looks to free up as much as AU$4.5 billion (US$3 billion) of capital.

In a statement the company said it was part of plans to “simplify its organisational structure” and that it would, “focus on its market-leading Australian business and international investments platform.”

The move, by one of Australia’s largest construction companies, creates uncertainty around a litany of unfinished projects around the world, including in Malaysia, China, US, UK and Italy.

“We recognise that our security price performance and securityholder returns have been poor as we have faced structural challenges and a prolonged market downturn. We need to take significant action at an accelerated pace to deliver value for our securityholders, capital partners and customers,” Lendlease Chairman Michael Ullmer said.

“Today we have announced the blueprint to position Lendlease for success – focussing on our core strengths and competitive advantages.”

It has been reported that the restructuring could cost Lendlease up to AU$1.48 billion (US$985,000) in impairments and charges related to the project sales and as it writes down goodwill attached to its construction businesses in the US and the UK.

The company said it will dispose of a pair of major projects in Asia over the coming year, including the developer’s largest project in the region, The Exchange TRX mixed-use development in Kuala Lumpur.