Lendlease Group sells US military housing business for $480 million to Omaha Beach Investment Holdings

Lendlease Group Makes Major Move to Capture $4.5 Billion in Liquidity with Sale of US Military Housing Business

In a strategic move to capture $4.5 billion in liquidity from overseas investments, development and construction giant Lendlease Group (ASX: LLC) has announced the sale of its US military housing business for $480 million (US$320 million) to Florida-based Omaha Beach Investment Holdings.

The sale, which represents a significant premium to book value, is expected to generate operating profit after tax (OPAT) of $120 million. Approximately 150 employees will transfer with the sale, along with the operating platform of the business and associated management rights for asset, property, development, and construction management.

However, the transaction is still subject to third-party consents from particular service branches of the US Department of Defense in order to proceed.

This latest deal follows Lendlease’s previously announced $1.3 billion sale of 14 communities projects and the planned $147 million sale of the group’s Asia Life Sciences interests. The company notes that the exit of its US construction business is “well underway,” with documentation progressing after a non-binding heads of terms for the sale of the business unit’s East Coast operation.

Lendlease Group CEO Tony Lombardo commented on the progress, stating, “With $1.9 billion of transactions already announced, including the sale of US Military Housing, we have made significant progress towards our target of recycling $2.8 billion of capital in the next 12 months.”

He added, “As this transaction demonstrates, we continue to take a disciplined approach to capital recycling, achieving premiums to book value, as we balance speed of execution with achieving value for our securityholders.”

Lombardo highlighted that the implementation of the strategy is progressing well, with cost savings being realized across regions as Lendlease moves to a simplified management structure. The company is also working towards completing the sales of its Life Sciences joint venture and Communities projects.

Furthermore, preparations have commenced to sell the UK construction business within the next 18 months, with processes underway to recycle a further $1.1 billion of capital in FY25.

Lendlease’s priorities moving forward include strengthening the balance sheet, returning capital to securityholders, and investing in high return Australian operations, while continuing to build on its Australian development pipeline to support future earnings growth.