Firm was put on the market in May by company’s Australian parent
A shortlist of bidders for Lendlease is expected to be finalised in the coming weeks, Building understands.
The firm was put up for sale in May after the company’s Australian parent decided it wanted to focus on its domestic market instead.
The deal is being handled by the group board, headed by chief executive Tony Lombardo, in Sydney with the firm’s last official comment on the process being made in the middle of August at its annual results when it said it was still in the “early stages” of the sale.
But Building has been told Lendlease is hopeful of a deal being inked by early next year.
One source said: “Lendlease have a list of businesses they have sent packs to who they are interested in selling to. It should be down to one or two by November.” Interested bidders are believed to include both trade buyers and private equity firms.
A Lendlease spokesman said: “A process is underway to divest our UK construction business, which has a proud legacy, strong track record and future pipeline of work. As the divestment process is ongoing, we’re not able to comment further.”
The news will be a tonic for a firm which recently has seen UK construction boss Simon Gorski leave at the end of July and last week replaced on a job to turn the ITV Studios site on London’s South Bank into a mixed-use development by Multiplex.
And another job where it was in pole position for, a City tower called the Dovetail Building, has seen the developer approach rivals about building it instead.
Speaking to Building in June, Gorski, who has been replaced by Dave Cadiot, said a deal needed to happen soon. “We don’t want an extended period of uncertainty,” he added.
Jobs Lendlease is working on include the Google headquarters building at King’s Cross, a scheme on London’s Oxford Street to turn a former Debenhams store into mixed-use and the Manchester Town Hall refurbishment.
It has also won the deal to build a new stand at Crystal Palace’s Selhurst Park ground while it is bidding an office scheme next to 21 Moorfields called Tenter House. The firm made the shortlist after news broke it was up for sale. A winner is due by the end of the year at the site which is being demolished by John F Hunt.
In its last set of results filed at Companies House, Lendlease’s pre-tax profit slipped a third to £11.9m in the year to June 2023 on turnover down 8% to £509m. It said the fall in income was due to bidding less schemes over the covid-19 period but added that at its year-end it had £2.3bn of work at the preferred bidder stage.
No comments yet