Lendlease holds on to for-profit amid deal to sell UK construction arm

LTYD’s latest accounts said that its parent firm is “looking to expand its international investment business”, of which the for-profit landlord is a part. 

The firm said that with the backing of Lendlease, LTYD will “look to invest in affordable housing” and “manage those investments”.

Lendlease first revealed last May that it planned to exit all its overseas construction markets – including the UK – to focus on Australia.

On the deal with Atlas, Tony Lombardo, group chief executive of Lendlease, said: “This transaction builds on our progress to simplify Lendlease as we look to lower our risk profile and increase security holder 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.”

Based in Connecticut, Atlas was founded in 2002 and its affiliates own and operate 26 companies, which employ around 50,000 people globally.

Among its assets are cladding contractor and manufacturer Permasteelisa, which it acquired in 2020. 

Peter Bacon, operating partner at Atlas, 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.”

He added that Atlas is looking forward to working with David Cadiot, Lendlease UK’s current boss, and his team on “continuing to build the business”.

Among Lendlease’s current major UK projects are the £8bn regeneration of Thamesmead, which is being delivered in a joint venture with Peabody. As of March 2023, Lendlease had a pipeline of around 30,000 homes in the UK. 

Lendlease has owned its UK construction business since 1999, when it acquired Bovis Construction.

The deal with Atlas requires regulatory approval but is expected to complete by June this year, Lendlease said.