£35m deal for UK construction arm of Lendlease does not include for-profit landlord

However, the sale does not include its for-profit provider LTYD Homes, Lendlease confirmed to Inside Housing.

The landlord was registered with the Regulator of Social Housing in August 2021. 

Lendlease said the sale of its UK arm accelerates its progress to “further simplify” the group and “focus on the growth” of its Australian operations and international investments platform. It follows the recent sale of its US East Coast construction operations. 

Under the deal, the profit outcome is expected to be “broadly neutral” after providing for retained risks in relation to projects that have completed or substantially completed prior to exchange of the sale agreement.

The net cash outflow as a result of the transaction is expected to be about £50m due to the “unwind of negative working capital in the business” prior to and at transaction close and including the offset from receipt of initial sale proceeds. 

All of Lendlease’s existing UK construction employees will leave the group as they transfer with the sale. 

Tony Lombardo, group chief executive of Lendlease, said the deal builds on progress to simplify the developer “as we look to lower our risk profile and increase security-holder returns”. 

“It also represents a positive outcome for both our people and our valued customers,” he added.

In June 2024, Lendlease revealed plans for a 3,000-home mixed-use scheme in Birmingham city centre. The city council’s planning committee signed off proposals for the £1.9bn project known as Smithfield Birmingham.