Lendlease sells APAC life sciences business to Warburg Pincus JV

The company sold its interests to the JV for $129m.

Lendlease has agreed to sell its life sciences interests in Asia to a 50:50 joint venture with Warburg Pincus as the Australian firm boosts efforts to recover following multi-year losses and shareholder dissatisfaction. 

The construction company said the transaction is valued at $129m, and is expected to realise around $59.21m (A$66m) in net cash proceeds.

Lendlease said the new real estate platform complements its existing investments platform in Asia, including private funds and the listed Lendlease Global Commercial REIT.

“With the combination of Lendlelase’s 30 year track record in the Asia Pacific supporting the world’s largest pharmaceutical and life sciences companies and Warburg Pincus’ experience and track record in investing and scaling platforms, the joint venture is well-positioned to become the leading integrated life sciences real estate business in the region, offering compelling new investment opportunities to our investors,” Lendlease Global CEO Tony Lombardo said

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The company maintains its guidance of 7% return on equity for fiscal year 2024. This will depend on the execution of a number of transactions, including the selling to the JV and the sale of 12 communities projects, it noted.

Lendlease said the communities sale remains subject to regulatory approvals and other conditions. 

A$1=S$0.89