Property giant Lendlease will sell its overseas assets and refocus on its Australian operations as it aims to revitalise its lagging share price.
The company said on Monday it anticipated selling $2.8 billion in overseas assets over the next two financial years, including a high-end shopping mall in Kuala Lumpur, its US military housing across the country; a flagship senior living community in China; and its Australian retirement villages.
It plans to sell another $1.7 billion in assets by the end of 2027/28, including projects in the US, London and Singapore as they are completed.
That $4.5 billion will be used to pay down debt and return capital to shareholders, Lendlease said.
There will be 250 to 350 roles - primarily international - eliminated in the next 12 months and over 2,000 more foreign jobs reduced later via the divestments.
High-profile shareholders, including Tanarra Capital founder John Wylie, had been urging the board to offload its international operations, calling the company unfocused and overextended, with dissimilar operations spread across four continents.
Lendlease chief executive and managing director Tony Lombardo said the changes announced Monday would create a new Lendlease.
"One that is firmly anchored in the very best of our proud legacy, but less complex, more focused and fit for purpose," he said.
Lendlease securities have fallen each year since 2019, going from $17.61 at the start of 2020 to $5.89 last Friday, although they were up 9.4 per cent to $6.445 on Monday.
"We recognise that our security price performance and security-holder returns have been poor as we have faced structural challenges and a prolonged market downturn," said chairman Michael Ullmer.
"We need to take significant action at an accelerated pace to deliver value for our security-holders, capital partners and customers."
The projects in Lendlease's remaining portfolio include the One Sydney Harbour residential tower complex; a workplace development atop the under-construction Victoria Cross station in North Sydney; and Town Hall Place, an office tower at the intersection of Swanston and Flinders streets in Melbourne.
