Lendlease has offloaded its UK construction business to US private equity firm Atlas, as it looks to lower its risk profile and focus on Australia.
Under the terms of the agreement, Atlas will acquire Lendlease’s construction business and its operations including existing employees and leadership team.
The developer behind the £1.9bn Birmingham Smithfield scheme will receive a £35m cash consideration, including £10m which is deferred until June 2026.
Founded in 2002, Atlas and its affiliates own and operate 26 platform companies, employing more than 50,000 associates across 350 facilities worldwide. The firm’s combined businesses generate revenues of around US $16bn annually.
It had reaffirmed its commitment to the Smithfield scheme alongside its other remaining projects, but in some instances, it might look to “sell some of the plots” to other developers and investors.
TheBusinessDesk.com has asked Lendlease for comment on its commitment to the Smithfield development following the sale of the UK business.
Lendlease submitted plans for the first building in the regeneration of Birmingham Smithfield last month. The mixed-use building, designed by Bell Phillips and Intervention Architecture, will overlook Manor Square and include 408 build-to-rent homes and a health and wellbeing leisure facility, alongside a mix of shops, bars and restaurants.
Tony Lombardo, Lendlease Group CEO said: “This transaction builds on our progress to simplify Lendlease as we look to lower our risk profile and increase securityholder returns. It also represents a positive outcome for our talented people and our valued customers and clients, marking a new chapter under the ownership of Atlas.”
Peter Bacon, Atlas Operating Partner said: “We are excited to acquire one of the UK’s leading construction companies, which has a long track record of successfully delivering large complex projects for both private and public sector clients. We look forward to working with David Cadiot and his team continuing to build the business.”
Lendlease’s UK construction business was founded in 1885 as Bovis Construction and acquired by Lendlease in 1999. The company has been involved in some of the UK and Europe’s most iconic construction projects including the rebuilding works of Regents Street in 1923, Lloyds of London’s City Head Quarters in 1980, the first phase of Canary Wharf in 1991 and 8 Bishopsgate in the City of London to name but a few.
Completion of the transaction is subject to regulatory approvals, with completion targeted before the end of the Australian financial year in June 2025.
