Lendlease offloads Keyton stake in $525m deal

Lendlease offloads its remaining Keyton Retirement Living Trust stake for $525 million, brings recycling total to $3.4 billion, and plans more transactions.

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The Lendlease Group (ASX: LLC)share price is in focus today after the company announced it will sell its 25.1% interest in the Keyton Retirement Living Trust to Aware Super for $525 million, with proceeds going towards reducing group debt. This key deal is part of Lendlease's ongoing capital recycling initiative, which now totals $3.4 billion in announced and completed transactions.

The word Sale is spelled out using four large letters sitting on bright green grass with blue sky in the background indicating a land property sale

Image source: Getty Images

What did Lendlease report?

  • Sale of 25.1% interest in Keyton Retirement Living Trust for $525 million
  • Transaction proceeds to be used to pay down group debt
  • Deal aligns with HY26 book value
  • Brings total announced/completed capital recycling to $3.4 billion from the Capital Release Unit
  • Completion subject to regulatory approvals, targeted for 1H FY27

What else do investors need to know?

The sale to Aware Super is expected to complete in the first half of FY27, once conditions precedent—including regulatory approvals—are met. Today's news follows a series of asset sales under Lendlease's Capital Release Unit, with more than $3.4 billion in transactions either announced or completed since May 2024.

Management says further key transactions are in the pipeline for FY26 and early FY27, reflecting the company's focus on recycling capital and strengthening its balance sheet. Outcomes for the rest of the Capital Release Unit portfolio will depend on market conditions and transaction timing.

What's next for Lendlease?

Lendlease continues to pursue capital recycling as a way to realise value and support future growth. Management remains focused on balancing speed and execution with maximising value from its portfolio.

With several transactions still to be completed and others underway, investors can expect ongoing updates as Lendlease streamlines its business and manages debt levels in a challenging market environment.

Lendlease share price snapshot

Over the past 12 months, Lendlease shares have declined 44%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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