Misplaced Pages

Lendlease

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.
(Redirected from Lend Lease Group) Multinational construction and real estate company headquartered in Australia This article is about the company. For the World War II program, see Lend-Lease.

Lendlease Corporation Limited
Lendlease's headquarters at Tower 3 of the International Towers complex, Barangaroo, Sydney
Company typePublic
Traded asASX: LLC
IndustryInvestment, Construction and Real estate
Founded1958; 66 years ago (1958) (Sydney)
HeadquartersInternational Towers
Barangaroo, Sydney, Australia
Area servedWorldwide
Key peopleMichael J. Ullmer, AO (Chairman)
Tony Lombardo (Group CEO)
ProductsAsset and property management, Building, Infrastructure Development, Investment Management and Services, Asset and Investment Legal Services.
RevenueDecreaseAUD$8,822 million (2022)
Operating incomeDecreaseAUD$(61) million (2022)
Net incomeDecreaseAUD$(99) million (2022)
Number of employeesApprox. 8,500 (2022)
Websitelendlease.com

Lendlease is an Australian multinational construction and real estate company, headquartered in Barangaroo, New South Wales.

History

Founding

The company was established as Lendlease by Dick Dusseldorp in 1958 to provide finance for building contracts being undertaken by Civil & Civic. In 1961, the company acquired Civil & Civic from Bredero's Bouwbedrijf.

Lendlease first listed on the ASX in 1962. Operations expanded to the United States in 1971 and to Singapore in 1973.

In 1982, Lendlease acquired 50% of MLC Life Limited and in 1985 acquired the balance of the company. MLC's multi-manager, multi-style investment philosophy was introduced in 1986. It was later sold to National Australia Bank in the year 2000 for $4.56 billion, one of the biggest mergers in Australian corporate history.

Expansion and major acquisition

In 1999, the company formed Actus Lendlease with the acquisition of Actus Corporation's MILCON and technical service construction management business, and augmented this business with professionals from Lendlease Design and Lendlease Development. Around this time, the company also acquired the British-based builder Bovis Construction from P&O. During 2000, it bought Amresco's commercial mortgage business. One year later, Lendlease acquired Delfin Property Group (now Lendlease Communities) in exchange for $172 million. It went on to buy Crosby Homes (now Lendlease Residential Development) for circa £240 million in 2005.

Barangaroo, Valemus Acquisition, One Lendlease Era

In 2009, Steve McCann was appointed CEO. In the same year Lendlease Corporation acquired Babcock and Brown Communities, rebranding the business as Lendlease Primelife. At the time, this acquisition made Lendlease Australia's largest provider of retirement villages.

In December 2009, Lendlease was selected by the New South Wales Government to develop Barangaroo.

In 2010, Lendlease announced their first foray into the consumer market with Lendlease Solar. This subsidiary was wound up in early 2011, with no explanation as to why the division had closed.

On 17 February 2011 Lendlease announced wider ranging changes to its group of brands. This announcement meant the retirement of the Bovis, Delfin, Vivas, Catalyst and Primelife brands which were superseded by the unified Lendlease brand.

In late February 2011, Lendlease acquired DASCO in order to position itself to take advantage of the impending Obama administration Health sector boom. The company was immediately rebranded as Lendlease DASCO, and started operating independently of the Lendlease Americas business.

In March 2011, Lendlease completed the acquisition of Valemus (previously known as Bilfinger Berger Australia) from Bilfinger.

In March 2013, the business divested its aged care homes (from the acquisition of Babcock and Brown Communities) to Allity, a business owned by Australian Aged Care Partners.

In 2015, the company rebranded to use "Lendlease" as a single word.

In December 2016, Lendlease formed a joint venture agreement with Energy Made Clean. Energy Made Clean is a wholly owned subsidiary of renewable energy technology developer, Carnegie Clean Energy (ASX: CCE). With EMC and Carnegie's joint offerings, it is the only company in the world to offer a combination of wave, solar, wind, storage and desalination via microgrids. Microgrids are a budding industry and this partnership aims to provide end-to-end technologies that deliver energy independence and a reliable alternative to traditional forms of energy in regional, remote and fringe-of-grid locations in Australia, United States and around the world. This asset was later sold in 2020.

In February 2021, Lendlease announced that Tony Lombardo, previously CEO of Lendlease Asia, would takeover from Steve McCann as Group CEO. This took place in June 2021.

The global COVID-19 pandemic led to enforced site closures during the early 2020s, impairing revenues. In February 2022, Lendlease reported a first half loss of $264 million, which it attributed to one-off restructuring costs, COVID-19 issues and asset sales. The company cut about 360 jobs and garnered savings of $160 million. An improved second half to the financial year saw the company post a bottom-line loss of $99 million for the full year, after $333 million in writedowns on existing operations, a 61% drop in development EBITDA to $18 million and a 24% slump in construction earnings to $131 million.

Australia focus

In May 2024, Lendlease announced plans to sell its overseas operations and to be focused on its domestic operations in Australia by late 2025. It described its overseas markets as a "drag" on shareholder returns; its new strategy will focus on simplifying the firm's structure, reducing costs and leveraging its competitive strengths.

Regions

Lendlease operates across four regional subdivisions:

Australia

Lendlease's regeneration projects include Barangaroo South in Sydney, Docklands, Victoria in Melbourne, the RNA Showgrounds in Brisbane, and Adelaide Oval in Adelaide.

One of Lendlease's more controversial communities projects is their development for housing and industry of the former Australian Defence Industries ('ADI') land at St Marys (Ropes Crossing & Jordan Springs) in Western Sydney. Some of the group's major communities projects include Springfield Lakes, Queensland. Their ADI property is the largest intact area of the biodiverse and endangered plant community, the "Cumberland Plain Woodland".

Asia

Lendlease Asia has been working on two large urban development projects, The Exchange TRX (previously known as TRX Lifestyle Quarter) in Kuala Lumpur, Malaysia, and Paya Lebar Quarter in Singapore.

Americas

Lendlease built the western hemisphere's tallest residential tower, standing at 425m tall.

Lendlease Project Management & Construction (previously Bovis Lendlease) provided construction management services for the National September 11 Memorial & Museum in New York, in addition to a number of other major public buildings throughout the U.S. A Public Private Partnership involved InterContinental Hotels Group and Lendlease, where they joined forces in the Privatization of Army Lodging to deliver quality hotels to United States Army Soldiers, their Families, and official guests of the United States Army. This partnership created IHG Army Hotels, a division of InterContinental Hotels Group. Other urban regeneration projects include Southbank, an area of Chicago, IL.

Soaring Heights, a 6 MW solar development at Davis-Monthan AFB, Tucson, Arizona, United States, is a large Public Partnerships business in the US.

Europe

In Europe, major urban regeneration programmes are underway in Elephant and Castle as Elephant Park, and in Stratford, London as The International Quarter London. Lendlease also worked as project manager on a new township at Durrat Al Bahrain on Bahrain Island.

Lendlease oversaw the restoration of the encaustic tile pavements at Palace of Westminster in 2015.

In Europe, Lendlease Project Management & Construction provide project management and construction services for new projects and programmes. In 2015, Lendlease oversaw the restoration of the encaustic tile pavements at The Houses of Parliament.

Major projects and operations

The Lendlease Tower in Townsville City, Australia
National September 11 Memorial/Ground Zero Memorial, New York City
Adelaide Oval Redevelopment, finished in 2014

Major construction projects carried out by the company include:

Controversy and incidents

In 2008, the company and a subcontractor abatement firm, the John Galt Corporation, were charged with numerous OSHA safety violations after a fire broke out and killed two firefighters at the Deutsche Bank Building, a Manhattan skyscraper being demolished in the wake of the September 11 attacks. The violations included an employee (Safety Manager) of "Lendlease's Project Management & Construction Business" filling out a safety check list that identified a stand-pipe as being present and functional - when it was actually disconnected in a hard to see spot. The firemen consulted the check list, thought they had a good system and proceeded up into the building to fight the fire. Only when they reached the dangerous area that was on fire, did they realise the system did not have any water pressure, and they died trying to retreat amid the confusion. As of June 2011, two out of the three individuals charged in the associated manslaughter and criminally negligent homicide case have been acquitted.

In 2012, Lendlease agreed to pay $56 million in fines and restitution after admitting that the company had routinely over-billed clients and evaded government rules regarding the hiring of women and minority-owned firms. For a ten-year time span ending in 2009, the company along with others devised a scheme to defraud federal, state and local government contracting agencies as well as private clients. The fine is the largest in the city's history.

On 29 October 2012 the long boom of a Lendlease construction crane atop the 1,004 foot high One57 snapped during Hurricane Sandy forcing the evacuation of several buildings in Midtown Manhattan.

In October 2018, Lendlease was announced as a contender for a £330 million contract to renovate Manchester Town Hall. Manchester's Opposition Leader and former MP John Leech uncovered a history of legal, ethical and worker safety controversy surrounding the two shortlisted companies (Laing O'Rourke and Lendlease). He said that "Under absolutely no circumstances" should Lendlease ever be considered for a council contract again until they paid a £3 million Grenfell-style cladding bill in the Green Quarter of Manchester. In January 2019, Lendlease was announced as the winner of the contract. Leech criticised the decision and said it showed a lack of concern for local people.

A 23-year-old worker was killed and two others seriously injured in October 2020 on a Lendlease construction site at Curtin University in Western Australia. This occurred when the roof on the new School of Design and the Built Environment building collapsed.

References

  1. ^ "Annual Report 2022" (PDF). Lendlease. Archived from the original (PDF) on 28 October 2022. Retrieved 28 October 2022.
  2. "About Us". Lendlease. Retrieved 28 October 2022.
  3. "Company chief who delivered in spades for clients, shareholders". Sydney Morning Herald. Retrieved 6 October 2015.
  4. "Civil and Civic (1951 - )". Encyclopedia of Australia Science. Retrieved 7 April 2018.
  5. "Our History". Lend Lease. Retrieved 28 October 2022.
  6. "About us". nab.com.au.
  7. "NAB nabs MLC financial services unit". PM. 10 April 2000.
  8. ^ "History and Achievements". Lend Lease. Retrieved 28 February 2015.
  9. Rogers, David (23 February 2009). "Lend Lease offers Olympic work to Bovis rivals | Online News". Building. Retrieved 28 February 2015.
  10. "Lend Lease completes purchase of AMRESCO mortgage holdings. – Free Online Library". Thefreelibrary.com. Retrieved 28 February 2015.
  11. "Lend Lease". Lend Lease. Retrieved 28 February 2015.
  12. "Crosby Homes chiefs in line for £25m from sale to Lend Lease". The Times. 24 June 2005. Archived from the original on 12 June 2011.
  13. "Lendlease appoints Steve McCann as CEO". News.com. 2 October 2009. Retrieved 7 April 2018.
  14. ^ "About". Lendlease. Archived from the original on 3 February 2012. Retrieved 21 April 2014.
  15. "Retirement Living". Lendlease. Archived from the original on 27 January 2013. Retrieved 21 April 2014.
  16. "Retirement Living – Retirement Villages, Retirement Apartments, Retirement Units & Serviced Apartments | Lendlease". Lendleaseseniorliving.com.au. 19 April 2004. Retrieved 21 April 2014.
  17. "Lendlease wins $6bn Barangaroo development". Australian Financial Review. 21 December 2009.
  18. "Lendlease – Contacts". Lendleasesolar.com.au. 30 June 2013. Retrieved 28 February 2015.
  19. "Lendlease to drop Bovis name Ι Construction Enquirer". Constructionenquirer.com. Retrieved 21 April 2014.
  20. "Lendlease to Acquire Healthcare Developer DASCO". PR Newswire. 23 February 2011. Retrieved 7 April 2018.
  21. "Media Releases". Archived from the original on 31 December 2012. Retrieved 10 January 2011.
  22. Tan, Gillian (27 February 2013). "Archer Capital Buys Lendlease's Aged Care Business". Wall Street Journal.
  23. "Lendlease revitalises branding to match next pipeline of projects". cmo.com.au.
  24. Lenaghan, Nick (17 November 2020). "Lendlease exits US solar farms business". Australian Financial Review.
  25. "Lendlease announces new CEO as McCann retires". Shopping Centre News. 15 February 2021.
  26. Cummins, Carolyn (21 February 2022). "Lendlease posts $264m loss as pandemic bites development, cuts dividend". Sydney Morning Herald. Retrieved 22 August 2022.
  27. Nichols, Nick (22 August 2022). "Lendlease posts $99m loss, targets 2024 to reap benefits of business shake-up". Business News Australia. Retrieved 22 August 2022.
  28. Lowe, Tom (28 May 2024). "Lendlease to pull out of UK and sell its overseas construction business". Building. Retrieved 28 May 2024.
  29. Marrs, Colin (28 May 2024). "Lendlease UK operation to be sold 'by end of 2025'". Construction News. Retrieved 28 May 2024.
  30. "Barangaroo South". Lend Lease. Archived from the original on 22 March 2012. Retrieved 21 April 2014.
  31. "Victoria Harbour". Lendlease.
  32. "ShowgroundHill". Lend Lease. Archived from the original on 22 March 2012. Retrieved 21 April 2014.
  33. "Adelaide Oval Recognised Nationally as Best Development". Adelaide Oval. 4 May 2015. Retrieved 28 October 2022.
  34. "Jordan Springs". Lend Lease. Archived from the original on 21 March 2012. Retrieved 21 April 2014.
  35. "Springfield Lakes". Lend Lease. Archived from the original on 21 March 2012. Retrieved 21 April 2014.
  36. "Lend Lease Relationship". Capella Capital. Archived from the original on 13 February 2011. Retrieved 22 September 2011.
  37. "Cumberland Plain Conservation Plan: What we heard" (PDF). Government of New South Wales. 1 August 2022. p. 19. Retrieved 28 October 2022.
  38. "A city precinct closer to home". Arup. Retrieved 28 October 2022.
  39. "National September 11 Memorial and Museum". Lend Lease. 11 September 2001. Archived from the original on 21 March 2012. Retrieved 21 April 2014.
  40. "Army taps Lend Lease, IHG for privatization". Hotel News Now. Retrieved 24 April 2014.
  41. "South Loop 'Riverline' mega-project breaks ground". Curbed Chicago. Retrieved 28 February 2018.
  42. Coggan, Jamie L. "Davis-Monthan to House Air Force's Largest Stateside Solar-Power Community". Davis-Monthan Air Force Base. Davis-Monthan Air Force Base. Archived from the original on 17 November 2015. Retrieved 16 November 2015.
  43. "West Grove". www.homesbylendlease.co.uk. Retrieved 10 August 2017.
  44. "The continuing development of Stratford London". IQL Straford. Retrieved 28 October 2022.
  45. "Durrat Al Bahrain". Archived from the original on 22 March 2012.
  46. "Palace of Westminster encaustic tiles (2018) - UK Parliament". parliament.uk.
  47. "Dome wins construction world 'Oscar'". The Daily Telegraph. 19 June 2001. Retrieved 5 November 2022.
  48. "Case Studies". infrabuild.com.
  49. "Construction Partner Profiles". Chicagoland Speedway. Retrieved 28 November 2010.
  50. "Huddersfield hospital trust pays £22M a year to Calderdale Royal PFI investors, finance chief admits". Huddersfield Examiner. 30 January 2016. Retrieved 7 April 2018.
  51. "Lend Lease - Commercial Office". Archived from the original on 19 May 2014. Retrieved 19 May 2014.
  52. "Worcester Bovis takes PFI hospital". Construction News. 1 April 1999. Retrieved 1 April 2018.
  53. "Endeavour House". Building.co.uk. 2004.
  54. Fraser, Peter (15 September 2004). "Some key dates in the history of the Holyrood Project" (PDF). Holyrood Inquiry. Retrieved 16 December 2006.
  55. "Chapelfield Norwich wins BCSC Gold Award". BDP. Archived from the original on 7 February 2012. Retrieved 29 December 2011.
  56. "Building - 734 - Bridgewater Place - Leeds". SKYSCRAPERNEWS.COM. Retrieved 2 August 2008.
  57. "New Romford Hospital". RIBA. Archived from the original on 14 April 2018. Retrieved 13 April 2018.
  58. "New Queen Mary's Hospital on the way". Richmond and Twickenham Times. 21 May 2004. Retrieved 5 May 2018.
  59. "Firms usher in new PFI era with credit guarantee scheme". Law Society Gazette. 29 October 2004. Retrieved 22 April 2018.
  60. "Theatre offers an outside view". New Steel Construction. 1 March 2007. Retrieved 28 October 2022.
  61. Conklin, Mike (11 May 2005). "Outdoor theater: A spectacle in progress". Chicago Tribune. Retrieved 9 May 2008.
  62. "Broadgate". British Land. Archived from the original on 29 January 2012. Retrieved 29 December 2011.
  63. "Building Management". Central Manchester NHS Foundation Trust. Retrieved 14 April 2018.
  64. "Bovis Lend Lease Project brochure" (PDF). 2011.
  65. "Trump SoHo finally topped out". New York Observer. 10 November 2008. Archived from the original on 20 December 2008.
  66. "Bovis to revamp BBC headquarters". The Daily Telegraph. 18 December 2002. Retrieved 5 November 2022.
  67. "Bovis Lend Lease to construct World Trade Centre memorial". Sydney Morning Herald. 14 March 2006. Retrieved 8 April 2008.
  68. "Media City, Salford: This is the BBC", building.co.uk, 18 September 2009, archived from the original on 3 January 2011, retrieved 20 July 2011
  69. "Lend Lease hands over delayed athletes' village plots to ODA". Building. 4 January 2012. Retrieved 28 October 2022.
  70. Shaer, Matthew (7 October 2012). "This Is What $90 Million Looks Like". New York Magazine. Archived from the original on 3 September 2021. Retrieved 19 November 2020.
  71. Hasham, Nicole (22 November 2012). "Lend Lease lands bid to build Gehry-designed 'paper bag' project". The Sydney Morning Herald.
  72. "50 United Nations Plaza". Skyscraper Centre. Retrieved 28 October 2022.
  73. "High anxiety: super-rich find supertall skyscraper an uncomfortable perch". The Guardian. 7 February 2021. Retrieved 28 October 2022.
  74. "Trust battles global firm in £100m court fight over 'substantial defects' at flagship NHS hospital". Health Service Journal. 9 February 2021. Retrieved 21 March 2021.
  75. Morby, Aaron (26 May 2022). "Lendlease £140m hospital claim to hit High Court". Construction Enquirer. Retrieved 27 May 2022.
  76. "International Towers, Sydney". RSHP. Retrieved 22 March 2023.
  77. "$1 billion plan to reshape Sydney - with separate $1.5 billion Lend Lease deal". Sydney Morning Herald. 11 December 2012. Retrieved 24 June 2016.
  78. "53W53 MoMA Tower". STRUCTURE magazine. 5 November 2012. Archived from the original on 9 July 2021. Retrieved 9 July 2021.
  79. "Lendlease exit raises doubts about timeline of Allianz stadium rebuild". The Guardian. 29 July 2019. Retrieved 22 March 2023.
  80. "'Bird's nest' sold: Unique Sydney buildings snapped up for $110m". Sydney Morning Herald. 7 October 2019. Retrieved 22 March 2023.
  81. "NorthConnex". Bouygues Construction Australia.
  82. "Lendlease's Google job finally reopens". Building. 12 June 2020. Retrieved 28 October 2022.
  83. "Crown Sydney reaches vertical milestone ahead of schedule". The Hotel Conversation. 25 May 2020.
  84. Rashbaum, William K.; V. Bagli, Charles (20 February 2008). "Bank Tower Contractors Accused of 44 Violations". The New York Times. Retrieved 12 September 2011.
  85. Jacobs, Shayna (29 June 2011). "Second Deutsche Bank Foreman Not Guilty in Deadly Blaze". DNAinfo.Com (Manhattan Local News). Archived from the original on 31 August 2011. Retrieved 12 September 2011.
  86. Rashbaum, William K. (24 April 2012). "Company Admits It Bilked Clients on Big Projects". The New York Times. Retrieved 25 April 2012.
  87. "Crane-Arm Snaps In Tower Mishap". The Wall Street Journal. 29 October 2012. Retrieved 30 October 2012.
  88. ^ "Calls For Lendlease To Be Suspended From Lucrative Council Contracts After Cladding Debacle". Manchester Gazette. 3 October 2018. Archived from the original on 3 October 2018. Retrieved 8 January 2019.
  89. "Uncovered: Manchester Town Hall's £330m shortlisted contractors drowning in legal, ethical and worker safety controversy". Mcrlibdems.org.uk. 3 October 2018. Retrieved 8 January 2019.
  90. "Local politician rails against council's contractors". Theconstructionindex.co.uk. 3 October 2018. Retrieved 8 January 2019.
  91. "Lendlease lands £330 million Manchester Town Hall Deal". Construction News. 8 January 2019. Retrieved 8 January 2019.
  92. Heywood, Dunlop (10 October 2018). "Lendlease beats Laing O'Rourke to Manchester Town Hall contract". Place North West. Retrieved 8 January 2019.
  93. "One worker dies, two men in their 20s injured as roof collapses at WA's Curtin University". abc.net.au. 13 October 2020.

External links

Lendlease
Former subsidiaries
People
Category
S&P/ASX 20 ←    S&P/ASX 50 companies of Australia   → S&P/ASX 200
As of 28 April 2021
Categories: