Lendlease to sell its interest in Capella Capital for $235m as part of capital recycling strategy

Property giant Lendlease has revealed it’s selling its interest in Capella Capital, a name behind major infrastructure projects such as Melbourne Metro tunnel, to the Sojitz Corporation.

Construction of the North East Link project in Victoria.

Property giant Lendlease will sell its interest in infrastructure investor Capella Capital to a diversified Japanese trading company as part of its strategy to simplify the group operations and drive profit.

Under the terms of the sale, Sojitz Corporation will acquire Lendlease’s interest in Capella’s infrastructure platform which consists of asset origination, asset management and principal equity investments, for $235m.

In Melbourne they include North East Link, Melbourne Metro tunnels and stations, the Frankston Hospital and Melton Hospital. About 80 Capella employees will transfer with the sale.

The sale is anticipated to contribute about $70m to Lendlease’s 2025 financial year operating profit after tax and bring the company’s total announced capital recycling initiatives to $2.2bn.

Lendlease also announced the completion of the $516m sale of its US Military Housing business to Omaha Beach Investment Holdings – an entity managed by Guggenheim Partners Investment Management.

Lendlease chief executive Tony Lombardo said the Capella Capital and Military Housing divestments progressed the company’s strategy to simplify the group to become “less complex, more focused and ultimately more profitable”.

“The sale of Capella Capital accelerates the release of capital while also reducing the group’s

future funding commitments, allowing Lendlease to focus on its core Australian operations and international Investments platform,” he said.

The Melbourne Metro Tunnel which was part of Cappella Capital’s infrastructure platform.

The deals were previously included in 2025 financial year earnings guidance of 54c to 62c per security, and its first-half earnings per share is expected to be in a range of 17c to 20c.

First-half gearing is expected to be in the range of 26-28 per cent but trend down significantly in the second half of FY25 towards the top end of a targeted 5 per cent to 15 per cent range.

The Capella transaction is subject to conditions including Foreign Investment Review Board approval and other third-party consents, and the target completion is the end of the 2025 financial year.

Capella has secured more than $34bn of projects in transport, social and energy infrastructure across Australia since 2009. It currently manages more than $20bn of assets and third-party equity capital of over $1bn.

Capella managing director Malcolm Macintyre said the announcement positions Capella for

significant future growth.

“Sojitz has a well-established presence in Australia and a strong appetite and capacity to invest domestically and overseas,” he said.

“With Sojitz support, Capella will be able to build on our success to date with Lendlease and target a broader range of infrastructure assets both in Australia and globally.

“We will also continue to work with Lendlease on current and future Capella projects

where Lendlease brings relevant construction or development expertise.”

Sojitz chief operating officer for energy solutions and healthcare division Takefumi Nishikawa said the company was committed to a long-term partnership that would tap into Capella’s infrastructure capabilities of project development, delivery and asset management.

“By acquiring Australia’s leading infrastructure developer, Sojitz seeks to provide integrated

services from project development to asset management with the aim of expanding this business model to regions with rapid infrastructure development such as the Middle East, Central Asia, Europe and the US, in addition to Australia,” he said.

Lendlease shares were 1.7 per cent stronger at $6.48 in early afternoon trade.

Originally published as Lendlease to sell its interest in Capella Capital for $235m as part of capital recycling strategy