Lendlease Moves Closer to $4.5B Asset Sale Target with Capella Capital Offload

2 min read | January 31, 2025 11:30 AM AEDT | By Team Kalkine Media

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Lendlease Moves Closer to $4.5B Asset Sale Target with Capella Capital Offload — Image source: shutterstock

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Highlights:

Lendlease Group (ASX:LLC) sells Capella Capital to Sojitz Corporation for $235 million, bringing total asset sales to $2.2 billion.

The divestment aligns with Lendlease’s broader strategy to streamline operations, following shareholder concerns over expansion costs.

Additional recent sales include a $1.3 billion deal with Stockland (ASX:SGP) and a $70 million divestment of its UK building arm.

Lendlease Group (ASX:LLC) has advanced its $4.5 billion asset sale strategy, offloading infrastructure investor Capella Capital to Japanese conglomerate Sojitz Corporation for $235 million. This latest divestment pushes total completed sales past the $2.2 billion mark, bringing the company closer to its financial restructuring objectives.

At least $70 million from the Capella Capital sale will contribute directly to Lendlease’s operating costs. Sojitz will gain full control of Capella’s infrastructure platform, which includes asset origination, management, and principal equity investments. Despite the sale, Lendlease and Capella are expected to maintain a working relationship on select projects, though the specifics remain uncertain.

The transaction follows a series of divestments aimed at simplifying Lendlease’s management structure and addressing shareholder concerns over high operating costs. In November, a $1.3 billion asset sale to Stockland (ASX:SGP) marked one of the most significant transactions in the campaign. More recently, Lendlease finalized a $70 million sale of its UK building business, further streamlining its international presence.

CEO Tony Lombardo previously outlined the company’s restructuring approach, emphasizing the importance of refining Lendlease’s portfolio to focus on core competencies in key markets. The company expects these strategic moves to lower financial and operational risks while improving earnings quality over the long term.

Another major milestone in the divestment plan includes the completion of a $516 million sale of Lendlease’s U.S. military housing business to Guggenheim Partners. The series of asset sales reflects a broader effort to recalibrate Lendlease’s operations and enhance financial stability.

Shares of Lendlease Group (ASX:LLC) responded positively to the latest development, with an intraday gain of 2.7%, signaling market approval of the ongoing restructuring strategy.

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