Lendlease Corporation Limited (ASX:LLC) Completes Key Sale Transaction
Completion of Communities Transaction
Lendlease Corporation Limited has confirmed the completion of conditions for the sale of 12 Australian master-planned Communities projects to Stockland Corporation Limited. The sale is valued at $1,060 million, with transfer expected to be finalised today along with the receipt of an initial payment of $515 million.
This sale marks a significant step in Lendlease’s broader strategy to achieve $2.8 billion in capital recycling initiatives this financial year. Overall, the company has now announced a total of $1.8 billion towards this target.
Future Cash Proceeds and Financial Guidance
Following the transfer of projects, Lendlease anticipates receiving an additional payment of approximately $450 million by January 31, 2025, with the remaining proceeds expected by June 30, 2025, pending completion adjustments. Despite the exclusion of certain land parcels, which may impact FY25 profits, the company maintains its earnings guidance.
Lendlease Group CEO Tony Lombardo stated, “The sale of our Communities projects is a key milestone in our target to recycle $2.8 billion of capital this financial year, as we look to become less complex, more focussed and ultimately more profitable.” Lombardo highlighted the company’s commitment to strengthening its balance sheet and returning capital to securityholders.
Continued Initiatives and Outlook
Further capital recycling efforts remain ongoing, with potential sales targeting TRX Retail in Malaysia and Australian Retirement Living. Lendlease’s FY25 earnings guidance remains at 54 to 62 cents per security, with gearing expected to trend down towards the target range in the latter half of FY25.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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