Lendlease accelerates capital recycling, announces new CFO

Lendlease announced a binding agreement for the ~$400 million sale of a 40% interest in The Exchange TRX retail mall and a 60% interest in the adjacent office tower to the Valiram Family Office. This transaction is targeted for completion in 2H FY26. This move accelerates Lendlease's FY26 capital recycling target of $2 billion from its Capital Release Unit (CRU), with expected cash inflows of ~$1 billion from this and other transactions now anticipated in 2H FY26. An additional ~$1 billion in capital recycling is also underway for 2H FY26.

Despite delays affecting 1H FY26 CRU earnings and increasing forecast Group gearing by ~10% to the mid-to-high 30% range, Lendlease maintains its target of 15% gearing by the end of FY26. The company also reported ~$2.9 billion in capital recycling transactions since May 2024, with ~$2.7 billion recorded in CRU, generating a ~$300 million net premium to June 2024 book values.

In a separate announcement, Lendlease revealed Simon Dixon will step down as group CFO on February 28, 2026, to relocate to Asia. Andrew Nieland, currently CFO Investment Management, will succeed him, commencing March 1, 2026. Mr. Dixon will continue in a strategic advisory role until December 31, 2026, and chair the Capital Recycling Steering Committee.