For Lendlease’s $4.5 billion turnaround plan to succeed, it will need to ensure it gains enough scale in the Australian market to compete with rivals, as it winds back its offshore operations, according to analysts.

The radical restructure of the once-dominant global developer – it will sell off its international construction business and progressively divest its development assets abroad – was quickly endorsed by investors, who sent the stock up 8 per cent after chief Tony Lombardo set out the transformation plan on Monday.