Lendlease
| Company type | Public |
|---|---|
| Industry | Construction, Real estate |
| Founded | 1958 |
| Founder | Dick Dusseldorp |
| Headquarters | Barangaroo, Sydney , Australia |
Area served | Australia, Asia, Americas, Europe |
Key people | Tony Lombardo (Group CEO) |
| Products | Construction, Real estate development, Urban renewal projects |
| Website | lendlease |
Lendlease is a multinational corporation based in Australia, specializing in construction and real estate, with its headquarters situated in Barangaroo, Sydney, New South Wales.
Establishment
The origins of Lendlease trace back to 1958 when Dick Dusseldorp founded the company to provide financing for building projects undertaken by Civil & Civic. In 1961, Lendlease took full ownership of Civil & Civic, acquiring it from Bredero's Bouwbedrijf.
The company went public on the ASX in 1962 and subsequently expanded its footprint internationally, entering the United States market in 1971 and Singapore in 1973.
In 1982, Lendlease purchased a 50% stake in MLC, achieving complete control by 1985. The firm introduced MLC's multi-manager investment strategy in 1986. In a landmark transaction in 2000, Lendlease sold MLC to National Australia Bank for $4.56 billion, representing one of the largest corporate mergers within Australia.
Growth and Significant Acquisitions
In 1999, Lendlease enhanced its construction management capabilities by acquiring Actus Corporation’s MILCON and technical services divisions, forming Actus Lendlease and integrating experts from Lendlease Design and Development. Around the same period, it also purchased British construction firm Bovis Construction from P&O. The year 2000 saw Lendlease acquire Amresco’s commercial mortgage portfolio. In 2001, the company expanded further by buying Delfin (now operating as Lendlease Communities) for $172 million, followed by the acquisition of Crosby Homes (currently Lendlease Residential Development) for about £240 million in 2005.
Barangaroo Project, Valemus Acquisition, and One Lendlease Transition
Steve McCann assumed the role of CEO in 2009. That year also marked the acquisition of Babcock and Brown Communities, which was rebranded as Lendlease Primelife, positioning Lendlease as Australia's leading retirement village operator.
In December 2009, the New South Wales Government appointed Lendlease to develop the prestigious Barangaroo project, valued at $6 billion.
Lendlease ventured into the consumer renewable energy sector in 2010 with the launch of Lendlease Solar; however, this subsidiary was quietly discontinued by early 2011.
On 17 February 2011, the company consolidated its various brands—Bovis, Delfin, Vivas, Catalyst, and Primelife—under a unified Lendlease identity.
In February 2011, to leverage growth opportunities within the US healthcare market under the Obama administration, Lendlease acquired healthcare developer DASCO. This entity was renamed Lendlease DASCO and operated separately from its Americas division.
By March 2011, Lendlease completed its purchase of Valemus (previously Bilfinger Berger Australia) from Bilfinger.
In March 2013, Lendlease divested its aged care facilities acquired through Babcock and Brown Communities to Allity, a company owned by Australian Aged Care Partners.
The company adopted a streamlined brand identity as "Lendlease" in 2015.
In December 2016, Lendlease entered into a joint venture with Energy Made Clean—a Carnegie Clean Energy subsidiary—to deliver integrated renewable microgrid solutions combining wave, solar, wind power, energy storage, and desalination technologies aimed at remote and regional markets both domestically and internationally. This asset was divested in 2020.
Tony Lombardo, formerly CEO of Lendlease Asia, was appointed Group CEO effective June 2021, succeeding Steve McCann.
The COVID-19 pandemic led to project shutdowns that adversely affected revenue streams. Reporting in February 2022 revealed a first-half loss amounting to $264 million attributed to restructuring charges, pandemic-related disruptions, and asset disposals. The firm reduced its workforce by approximately 360 employees and secured $160 million in cost savings. A stronger performance in the latter half trimmed the full-year loss to $99 million following $333 million in writedowns; development EBITDA declined by 61% to $18 million while construction profits dropped by 24% to $131 million.
Focus on Australia
In May 2024, Lendlease declared its intention to withdraw from international markets and prioritize its operations within Australia by the end of 2025, describing overseas ventures as a "burden" on shareholder value. This approach seeks to streamline the company’s organizational framework, cut expenses, and capitalize on its core competitive advantages.
Effective 1 January 2025, Lendlease reached an agreement to divest its UK construction division to the American private equity firm Atlas Holdings for £35 million, with the transaction expected to finalize by June 2025. The sale concluded in March 2025, and the entity was rebranded as Bovis, reviving a name that had been retired since 2011.
Regions
Lendlease’s operations are segmented into four main regional units:
Australia
Prominent urban renewal initiatives include Barangaroo South in Sydney, Melbourne’s Docklands, Victoria, Brisbane’s RNA Showgrounds, and Adelaide Oval in Adelaide.
Significant residential community projects encompass the former Australian Defence Industries ('ADI') site at St Marys (Ropes Crossing & Jordan Springs) in Western Sydney and Springfield Lakes, Queensland. The ADI area is distinguished as the largest remaining expanse of the biodiverse and endangered "Cumberland Plain Woodland" ecosystem.
Asia
Lendlease Asia is actively involved in two key urban development schemes: The Exchange TRX located in Kuala Lumpur, Malaysia, and Paya Lebar Quarter situated in Singapore.
Americas
Lendlease Project Management & Construction (previously Bovis Lendlease) oversaw construction work for the National September 11 Memorial & Museum in New York alongside various other significant public buildings across the United States. A Public-Private Partnership with InterContinental Hotels Group resulted in the establishment of IHG Army Hotels, delivering high-quality accommodations for U.S. Army personnel and their guests. Urban revitalization efforts include Chicago’s Southbank district.
In renewable energy ventures, Lendlease developed Soaring Heights, a 6 MW solar installation at Davis-Monthan Air Force Base in Tucson, Arizona, underscoring its involvement in Public Partnerships within the U.S. market.
Europe
In Europe, Lendlease engages in urban regeneration projects such as Elephant Park at Elephant and Castle and The International Quarter London in Stratford. The company also managed the development of a new township at Durrat Al Bahrain.
In 2015, Lendlease Project Management & Construction took charge of restoring encaustic tile pavements at the Palace of Westminster, highlighting its proficiency with heritage conservation projects.
Major projects and operations
The company has undertaken several significant construction developments:
Controversies and incidents
In 2008, following a fire at Manhattan’s Deutsche Bank Building that claimed two firefighters’ lives, Lendlease and subcontractor John Galt Corporation were cited for multiple OSHA safety violations. The tragedy involved a falsified safety checklist indicating a functional stand-pipe system that was actually disconnected, causing critical confusion during firefighting efforts. By June 2011, two out of three individuals charged with manslaughter and negligent homicide related to the incident were acquitted.
In 2012, Lendlease consented to pay $56 million in penalties and restitution after admitting to systematic overcharging clients and breaching government regulations concerning contracts with women- and minority-owned businesses. Over a period exceeding ten years ending in 2009, the company participated in a scheme defrauding federal, state, local agencies and private clients—resulting in the largest fine ever imposed in New York City.
On 29 October 2012, a construction crane operated by Lendlease atop the 1,004-foot One57 tower snapped during Hurricane Sandy, triggering evacuations across Midtown Manhattan.
During October 2018, despite opposition from local officials citing prior legal, ethical, and worker safety issues involving Lendlease, the company was shortlisted for a £330 million contract to refurbish Manchester Town Hall. Opposition leader John Leech objected to awarding contracts until a £3 million cladding problem at Manchester’s Green Quarter was resolved. Nonetheless, Lendlease secured the contract in January 2019, attracting further criticism for overlooking community concerns.
In October 2020, a roof collapse at Lendlease’s construction site at Curtin University in Western Australia caused one fatality and left two workers seriously injured.
External links
- Articles with short description
- Lendlease
- Financial services firms headquartered in Sydney
- Australian investment companies
- Companies listed on the ASX
- Australian multinational corporations
- Shopping center management companies
- Australian real estate firms
- Real estate companies founded in 1958
- Financial services firms established in 1958
- 1958 establishments in Australia