ASX-listed Lendlease only owns 25.1% of its business Retirement Living by Lendlease and a significant move by David Di Pilla’s HMC Capital may hasten its departure from the sector after more than 30 years.
HMC Capital Partners Fund 1 has disclosed in an update that has bought a near 3% stake in Lendlease and becomes the latest to question Lendlease’s continued involvement in the retirement living sector.
“We believe a more simplified business, with fewer moving parts, will reduce risk and allow management to focus on the core business – that is, delivery of the development pipeline and creation of product for the Investments business,” HMC said
“This could include reducing exposure to non-core segments such as communities and retirement, narrowing the scope of the low-margin construction business to focus on internal projects only and reviewing Lendlease’s presence in geographies where it may not have a competitive advantage.”
Tanarra Capital, founded by John Wylie AM, 12 months ago told Lendlease to get out of the retirement business altogether or hold less than a 10% stake.
