Australian construction giant Lendlease to exit UK, U.S. and European businesses, selling off major projects

Australian construction and development giant Lendlease is making a major move by exiting its businesses in the UK, U.S., and Europe. This decision will impact several huge projects currently in progress, as they will be sold or handed over to new developers.

In a recent stock exchange announcement, Lendlease revealed that it will be focusing on its Australian construction and development business, as well as its international real estate investment management business. This strategic shift will involve the company exiting its interests in the UK, U.S., and European construction and development sectors, with the construction business set to be put up for sale within the next 18 months.

Assets and projects that Lendlease will be exiting have been divided into three categories. Some land will be sold immediately, along with completed units at various residential projects. In the UK, this includes properties at Deptford Landings, Elephant Park, Wandsworth, and Potato Wharf. In the U.S., assets at Southbank, Lakeshore East, and Hayes Point will also be sold.

Projects undertaken in partnership with joint venture partners will either be sold or transferred to the investment management business. This includes developments such as Stratford Cross, Elephant Park, 1 Java Street, Habitat, and Forum.

Lendlease will also continue to manage large projects in which it is the master developer, such as Euston Station, Thamesmead, Silvertown, and Smithfield, before handing them over to new developers. Additionally, the company will be selling its U.S. military housing business.

The rationale behind this strategic shift is to focus on higher-margin interests in Australia and to free up capital from markets where returns are not as high. This move by Lendlease is set to have a significant impact on the construction and development landscape in the UK, U.S., and Europe.