Lendlease is pulling the plug on a disastrous foray into the US, UK and European construction markets with a retreat from its sprawling international portfolio that promises to unlock $4.5 billion in capital.
The company and its under-fire chair Michael Ullmer have faced a backlash from investors who have been pressing the board and senior executives to focus on Australian operations as it struggles to rekindle a stock price that has plunge almost two-thirds since 2019.
Lendlease revealed in a strategy update on Monday that it would simplify the business to enhance its integrated real estate business in Australia with international investment management capabilities. It expects “significant progress” towards the goal within the next 12 to 18 months.
“We recognise that our security price performance and securityholder returns have been poor as we have faced structural challenges and a prolonged market downturn,” Mr Ullmer said.
“We need to take significant action at an accelerated pace to deliver value for our securityholders, capital partners and customers.
“Today we have announced the blueprint to position Lendlease for success – focussing on our core strengths and competitive advantages.
“We have thought very carefully about the necessary strategic refocus and made some tough decisions.”
More to come.
Source Agencies
