Property group Lendlease has finally sold its troubled engineering business to Acciona of Spain for $160 million.
That’s $20 million less than the price announced last December.
The sale, which was first announced in December last year, marks the end of a long process of Lendlease selling down its non-core businesses and $500 million of write-downs and losses on the sale of the engineering business alone.
But the sale of its engineering services business remains on hold until the world recovers from the global pandemic.
For Acciona, the acquisition, along with new projects won in recent months, increases its infrastructure backlog in Australia to $4 billion (€2.47 billion) across a range of private and public sector contracts.
Lendlease says it will retain the NorthConnex, Kingsford Smith Drive, and Melbourne Metro Tunnel projects (the latter being trouble-plagued).
Bede Noonan, Acciona’s CEO in Australia and New Zealand for the infrastructure business, said over the last five months the combined businesses of Acciona and Lendlease Engineering have already successfully secured some significant wins that includes projects in Western Australia, NSW, and Queensland.
The deal comes as Lendlease is re-focusing its business away from a builder constructer style, which it announced at its strategy day last month.
Lendlease shares ended the day down 0.6% to $12.72.
