Lendlease, the Australian property and infrastructure group, has entered into an agreement with Acciona Infrastructure Asia Pacific (Acciona) to sell its Engineering business for A$180 million (€110 million) .
The transaction, which is expected to complete in the first half of calendar year 2020, is subject to conditions including client and third party consents and regulatory approvals including the Foreign Investment Review Board.
”We believe the sale of the Engineering business represents a positive outcome for our people, our clients and our securityholders. Acciona is already a leader in the sector in which they operate. Our skilled workforce, client relationships and existing projects stand to enhance their existing footprint in Australia,” said Steve McCann, Group Chief Executive Officer and Managing Director.
“Today’s announcement also represents an important milestone for Lendlease as we continue to focus on the successful delivery of our more than $100 billion global development pipeline,” he added.
“Bringing Lendlease’s Engineering business together with Acciona will allow us to create one of Australia’s leading tierone engineering firms. Our two organisations share an impressive register of projects within Australia and internationally. Our combined team will have an opportunity to contribute to some of the most significant infrastructure projects of our generation,” said Bede Noonan, CEO of Acciona Australia and New Zealand.
Under the terms of the Engineering sale agreement, the NorthConnex and Kingsford Smith Drive projects, both in their final stages and are at least 90 percent complete, and Melbourne Metro will not be included in the perimeter and will remain with Lendlease.
ACCIONA has been operating in Australia since 2002, where it has developed its renewable energy, water and infrastructure businesses. The company employs in the country more than a 1,000 people and has invested some AU$1.9 billion (€1.2 billion).