Lendlease exists overseas assets as it announces overhaul

Global property giant Lendlease will shift away from the overseas construction markets and focus on its Australian businesses, which will incur costs of up to $1.475 billion, as part of its move to simplify the operations.

There will be a $500 million share buyback, a writedown of goodwill attached to the US and UK construction businesses, which arose because of the Bovis acquisition in 1999, and impairments of certain overseas development projects.

The actions will see staff cuts that could number more than 1000 in the overseas construction businesses.

In its investor update strategy announced today, embattled chief executive Tony Lombardo said, he has retained the investments platform in international markets “for several compelling reasons”.

“Through the decisive actions announced today, a new Lendlease is emerging. One that is firmly anchored in the very best of our proud legacy, but less complex, more focused and fit for purpose,” Lombardo said.

“Importantly, we do not launch this strategy from a standing start. Significant work has already been undertaken and we anticipate making further positive announcements in the near term on our progress.”

Lombardo and the board, including the retiring chairman Michael Ullmer, have been pressured to make drastic changes to the global behemoth.

High-profile investors led by John Wylie’s Tanarra Capital, Allan Grey and David Di Pilla’s HMC Capital have been agitating for the changes.