Lendlease exits international markets to focus on Australian operations, freeing up capital for shareholders

From Investing.com: 2024-05-26 23:05:56

Australian developer Lendlease will pull back from its overseas construction businesses, freeing up A$4.5 billion in capital for shareholders, focusing on local operations. A new capital release unit will recycle the funds, aiming for A$125 million in annual savings and returning A$500 million to shareholders through buyback plans.

After facing shareholder pressure to shift focus to Australian operations, Lendlease will book up to A$1.48 billion in impairments for overseas projects but maintain fiscal 2024 equity return outlook. Shares jumped nearly 10%, as analysts praised the strategy to address unprofitable offshore ventures.

CEO Tony Lombardo confirmed Lendlease will keep its investments platform in international markets to grow managed funds, despite the capital reallocation. The move follows the sale of the wealth management business to National Australia Bank, aiming to boost shareholder returns and improve security price performance.



Read more at Investing.com: Australia’s Lendlease exits offshore markets to focus on local growth By Reuters