Lendlease shares rise after divesting interest in Keyton to reduce debt

The news: Shares in Lendlease rose in morning trade after the property developer unveiled plans to divest its remaining 25.1% interest in the Keyton Retirement Living Trust. Completion is expected in the first half of FY27.

Shares rose 3.4% to $3.01 at 11:56am AEST.

The context: Keyton’s existing co-investor, Aware Super, will acquire Lendlease’s remaining interest for $525 million, with the net proceeds to be used to reduce Lendlease’s group debt.

The transaction brings the company’s total capital recycling initiatives through its Capital Release Unit to $3.4 billion, as it continues to advance other transactions targeted for the current and upcoming financial year.

What they said: “Increased ownership in Keyton reflects Aware Super’s strong belief in the business and our conviction in retirement living which aligns with the fund’s property strategy through exposure to long-term senior living demand backed by an aging demographic and a structurally undersupplied sector,” Aware Super head of property Alek Misev said.