Lendlease shares climb on Capella Capital sale
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More news: Lendlease shares gained after the real estate giant agreed to sell its infrastructure investing arm Capella Capital for $235 million and tied up the $516 million sale of its US Military Housing business.
Lendlease shares were up 2.7% to $6.54 at 11:20am AEDT, after shedding around 10% over the last 12 months.
Lendlease sells Capella Capital to Sojitz Corp for $235m
The news: Real estate group Lendlease has agreed to sell its infrastructure investing business Capella Capital to Japanese trading company Sojitz Corporation for $235 million.
It has also completed the $516 million sale of its US Military Housing business to Guggenheim Partners Investment Management, announced last year.
The numbers: Lendlease said the sale adds to its $1.9 billion of previously announced capital recycling initiatives, bringing the total of announced deals to $2.2 billion.
Last year, the real estate giant outlined a new strategy to offload $4.5 billion worth of assets from its international operations, simplify its management structure and undertake cost cuts.
The latest sale is expected to contribute around $70 million to FY25 operating profit after tax. Capella, which was established in 2009, will see 80 employees transfer to Sojitz as part of the deal.
The context: Under the terms of the transaction, Sojitz will acquire Lendlease's interests in Capella's infrastructure platform, which consists of asset origination, asset management and principal equity investments.
Lendlease and Capella will continue working together to complete projects currently in delivery, and will cooperate on current and future projects in the future, "where Lendlease has capacity", such as construction or development services.
The transaction remains subject to certain conditions, including Foreign Investment Review Board approval, with completion targeted by the end of the financial year.
What they said: "The announced Capella Capital and Military Housing divestments progress our strategy to simplify the group, as we work towards becoming less complex, more focused and ultimately more profitable," said Lendlease chief executive Tony Lombardo.
"The sale of Capella Capital accelerates the release of capital while also reducing the group's future funding commitments, allowing Lendlease to focus on its core Australian operations and international investments platform."
The source: ASX announcement
