Lendlease shares lift on US asset sales
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More news: Shares in Lendlease were up 2.3% to $5.54 in early trading on the ASX after the property giant finalised a deal to sell its US military assets for $480 million.
It said the transaction would generate operating profit after tax of $105 million to $120 million in FY25.
The company has been under pressure from shareholders to boost returns from its sprawling international holdings and focus on the Australian business.
Lendlease to divest US military housing business for $480m
The news: Property developer Lendlease will sell its US military housing business to Guggenheim Partners Investment Management as part of efforts to divest its international assets.
The numbers: Lendlease will sell the business, including the operating platform of the business along with associated management rights for $480 million, which it said was at a significant premium to book value.
The financial close is likely by the end of first half of FY25, with the deal to generate operating profit after tax of $105 million to $120 million.
Over the last 12 months Lendlease's share price has plummeted 31.52%.
The context: The sale is part of the company’s decision to undertake asset sales worth $4.5 billion, including its US and UK construction operations. The company has been under pressure from shareholders to boost returns from its sprawling international holdings and focus on the Australian business.
Lendlease announced the sale of 12 Australian communities projects to a consortium of Stockland and Supalai Australia for $1.3 billion in December. It also agreed to sell its life sciences interests in Asia to a newly established 50/50 joint venture with US private equity giant Warburg Pincus in May.
What they said: “With $1.9 billion of transactions already announced, including the sale of US military housing, we have made significant progress towards our target of recycling $2.8 billion of capital in the next 12 months," Lendlease CEO Tony Lombardo said.
"Processes to recycle a further $1.1 billion of capital in FY25 are underway.”
The source: ASX announcement
