Lendlease falls following Milan property deal extension
- Lendlease Group extended the deadline to sell its ownership stake in a Milan mixed-use project to Oct. 15.
- Shares fell 2.5% during the first hour of Friday trading due to transaction delays.
- Unmet transaction conditions forced the company to delay closing or risk funding significant local development costs.
Lendlease Group (ASX:LLC) delayed the sale of its interest in a Milan mixed-use development, exposing the business to potential project costs of $160 million.
The company previously arranged to sell the stake held by its Heartbeat Fund to an investment group sponsored by local developer Bizzi.
Unmet conditions precedent required both parties to extend the satisfaction deadline to Oct. 15, though closing remains uncertain.
If the transaction fails to complete, Lendlease stated it will likely need to fund project obligations of $160 million during the current half.
The ongoing uncertainty leaves the project timeline subject to further extensions while management seeks to finalise terms.
Following the announcement, the Lendlease Group share price was down at $2.63.
The business has been executing a broader strategy to simplify operations by selling offshore assets and reallocating capital.
The divested international projects are designed to lower capital commitments and improve balance sheet efficiency over time.
