Once the leading provider of retirement villages in Australia, Lendlease CEO Tony Lombardo has told staff it will sack 10% of its global workforce, sell a stake in its $1.7 billion residential estate business and offload the remaining 25.1% stake in its retirement living operation.

The SOURCE asked in May if Lendlease was planning to quit the retirement living sector and last month reported a story from The Australian that Lendlease had hired investment bank Gresham to get a high price for its remaining 25%.  

In May, it was announced that Lendlease Retirement Living, which is operated under a trust structure, jointly owned and operated by Aware Super (49.9%), APG Asset Management (25%) and Lendlease, had rebranded as Keyton under CEO Nathan Cockerill.

Tony’s announcement means that all the capital knowledge, business and senior management understanding of retirement villages that Lendlease has acquired over the past 30-plus years will be lost.

Lendlease has decided to move out of funding large property development, switching to bringing in large international pension funds and local superannuation funds to work on its projects earlier. 

For example, Lendlease and Daiwa House Australia yesterday announced a new partnership in Australia to develop a Build to Rent apartment block at Melbourne Quarter. The two businesses recently partnered to deliver the 41-storey mixed use Claremont Hall residences in Manhattan, New York.