Lendlease shares fall after flagging FY26 operating hit on Milan sale
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Lendlease fell in afternoon trade after the real estate group sold its Milano Santa Giulia development rights in Milan at a discount, resulting in an operating loss of approximately $175 million to be recognised in FY26.
Shares slumped 4.8% to $2.59 at 2:22pm AEST.
Lendlease to book $175m loss on Milan development sale
The news: Real estate group Lendlease has agreed to sell its Milano Santa Giulia (MSG North) mixed-use development in Milan to an investment group sponsored by Italian property developer Bizzi & Partners.
The numbers: The deal has a gross value of $250 million, assuming project debt of $160 million.
The sale will be conducted at a discount to book value and is expected to result in a post-tax operating loss of around $175 million, to be recognised within Lendlease’s capital release unit line in FY26.
The context: Lendlease said that, while the sale is expected to result in a loss, the sale is another milestone in the company’s capital release from long dated and complex projects, while also removing future capital obligations associated with the development and holding costs.
The group also said it has a number of major capital recycling transactions “announced or in advanced stages”, including several targeted to reach contractual close or completion by 30 June.
What they said: “The sale of the commercially challenged MSG North project is consistent with our strategy to reduce long-dated international development capital and simplify the group,” said Lendlease CEO Tony Lombardo.
The source: ASX
