Last week’s profit warning could be the first stage of the new CEO’s company reset. A review, covering the restructuring of operations and impact of market uncertainties will likely lead to further divestment of less-core businesses and re-prioritization of the existing 23 urbanization projects.
FY22 NPAT is forecast to increase, although still remind 20% below pre-pandemic levels. LLC will provide the FY21 results on 16 August.
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Lendlease announced a raising of up to $1.15bn $9.80 per share.
The equity raising comprises a fully underwritten $950m institutional placement, along with up to $200m via a non-underwritten SPP. With the proceeds from the placement, liquidity will increase to $4bn and company gearing will fall to 10-15%, (assuming completion of the sale of the Engineering business).
A correction in commercial real estate will provide new opportunities for Lendlease but will also ensure a tough operating environment in the near-term.