Lendlease to Exit U.S. Market and Hand Over Some Operations to Consigli
By Mark Hallum May 29, 2024 5:18 pm
reprints
Global development company Lendlease is calling it a day after 45 years of operating in the U.S. market, in a reorganization that will focus on its native Australia while positioning itself into a “lower-risk business,” the developer announced.
As part of Lendlease’s exit from the country, Consigli Building Group has acquired all of Lendlease’s New York and New Jersey operations, including its employees and up to 45 Lendlease projects currently underway, Consigli announced. Terms of the acquisition were not disclosed.
Lendlease will also exit the U.K. market and “recycle” $4.5 billion of capital back to its Australian operations, getting projects in both countries that are either announced or underway off its books, according to the company. It expects to collect $125 million in savings over the next 12 months as well as prioritize debt reduction and capital returns for shareholders.
“As we have built our relationship over the years, I have long admired Consigli’s leadership and commitment to quality, safety and customer service,” Claire Johnston, CEO of Lendlease’s America operations, said in a statement. “As Lendlease’s global strategy is redirecting its construction and development focus more closely to Australia, I am confident that our teams, under the trusted Consigli leadership, will ensure the future success for our clients and our people.”
During its time in the U.S., Lendlease worked on projects such as the National September 11 Memorial & Museum, Central Park Tower at 225 West 57th Street, the Javits Convention Center expansion and the American Museum of Natural History’s expansion.
Lendlease currently has a 36-story, 834-unit multifamily project under construction on the Greenpoint, Brooklyn, waterfront, giving it control of the NYC Ferry dock in the neighborhood.
“Expanding our New York and New Jersey portfolio with the addition of Lendlease, a highly complementary business to ours, signifies our dedication to growth and excellence in this core market,” Anthony Consigli, CEO of Consigli, said in a statement. “As we leverage our combined strengths, expertise, and capabilities, we’re poised to deliver heightened value to our clients with the greater ability to tackle more complex and ambitious projects.”
Whether Consigli will keep all staff currently working for Lendlease and what will happen to its operations outside of New York and New Jersey is unclear. A timeline for the transition was not provided.
Lendlease’s time in the U.S. was not without any pain, as the developer recently lost the $15 billion deal with Google to build homes, office and retail in Silicon Valley. At the time, Lendlease said it “mutually reached” an agreement with Google to end the projects, CNN reported.
Mark Hallum can be reached at mhallum@commercialobserver.com.
