This article is from the Australian Property Journal archive
LENDLEASE has avoided a second strike from shareholders at its annual general meeting, as investors showed improved confidence in the property giant’s direction.
Newly appointed chairman John Gillam was voted into the role with 99.48% of votes in favour, and while the remuneration report faced some opposition, still captured 91.39% of votes in favour.
Lendlease in May bowed to pressure from frustrated investors and announced a $4.5 billion capital recycling program. It is jettisoning its problematic international construction projects in favour of a focus on its local operations.
Key shareholders, including Aware Super and John Wylie’s Tanarra Capital had been pushing hard for management change – effectively claiming the scalp of chair Michael Ullmer, who stepped down at the AGM – following a string of soft results and returns and ongoing scepticism around the viability of its overseas activities.
Lendlease received Foreign Investment Board Approval last week for th $1.06 billion sale of 12 land lease communities in NSW, Queensland and Western Australia to Stockland and and Supalai.
Construction is now underway on Lendlease’s new $500 million build-to-rent development on Melbourne’s Docklands, shortly after announcing its partnership with Japan’s Nippon Steel to deliver the project, while nearby it has just been given the green light from the Victorian government to build 915 apartments that will complete its Collins Wharf project.
Group CEO and managing director, Tony Lombardo said a launch of a security buyback of up to $500 million in the near-term is subject to completing certain key capital recycling transactions to provide confidence that the group will be within its target gearing range by the end of FY26.
