Integrated real estate business Lendlease Corporation has completed the sale of 12 Australian master-planned Communities projects to Stockland Corporation and its partner Supalai Australia Holdings for $1.06 billion.
Lendlease Group (ASX: LLC) said the conditions precedent for the sale to Stockland (ASX: SGP) and Supalai had been satisfied and the transfer of projects was expected to be completed today, with the payment of the first $515 million instalment.
The company said a payment of about $450 million was expected by 31 January 2025 with the remaining proceeds to be received by 30 June 2025, subject to completion adjustments.
This brought total announced capital recycling initiatives to $1.8 billion in the 2025 financial year.
Group CEO Tony Lombardo said the sale was a key milestone in Lendlease’s target to recycle $2.8 billion of capital this financial year, as it looked to become less complex, more focussed and ultimately more profitable.
“As we further simplify the group, we remain focussed on strengthening our balance sheet, returning capital to securityholders and investing in our high return Australian operations and international investments platform,” Lombardi said in an announcement to the Australian Securities Exchange.
Processes for further capital recycling initiatives in FY25 were ongoing, including the sales of TRX Retail in Malaysia, China Senior Living and Australian Retirement Living.
“The sale process of the UK Construction operations to further simplify the Group is also progressing,” he said.
Earnings guidance for FY25 remained unchanged as a number of transactions were targeted for completion and, although gearing was anticipated to remain elevated at first half levels, it was expected to fall significantly in the second half.
Lendlease also said it remained in discussions with a landowner about additional land which no longer formed part of the sale as relevant conditions had not been met.
At 0310 pm (EDT) Lendlease shares were trading at $7.14, up 5 cents (0.7%), after trading between $6.98 and $7.14, and capitalising the company at $4.89 billion.
They have fallen from more than $20 since 2018.