Lendlease terminates $90M Milan development sale
Key points
- Lendlease has terminated its agreement to sell development rights for the Milano Santa Giulia mixed-use project in Italy.
- The cancellation removes approximately $90 million in anticipated cash proceeds and introduces a potential $160 million funding requirement.
- Lendlease stated that it is pursuing alternative transactions to avoid funding project obligations directly.
Lendlease (ASX:LLC) has terminated the sale agreement for its interest in the Milano Santa Giulia mixed-use project, forfeiting roughly $90 million in expected cash proceeds.
The group had planned to receive the cash proceeds in the first half of fiscal year 2027 from its Heartbeat Fund vehicle in Milan.
Lendlease confirmed it is actively seeking alternative buyers for the project development rights ahead of the next calendar year.
The company stated that if a replacement transaction is not completed by Dec. 31, it faces funding obligations of approximately $160 million in the first half of fiscal year 2027.
Following the announcement, the Lendlease share price was down at $2.44.
The company originally agreed to transfer its project rights to a buyer consortium as part of a wider effort to wind down its non-core overseas operations.
