Former Dexus boss Darren Steinberg is being tipped as a possible contender for a director or the chairman’s role on the board of Lendlease.
It comes as Michael Ullmer is set to step down chair this month with Lendlease to update investors on its strategy on May 27.
Another name being mentioned as a possible chair or director candidate is former Suncorp boss and ex Mirvac chair John Mulcahy.
Mulcahy previously worked at Lendlease when it owned the wealth management business MLC and was head of the investment arm before he went on to run Suncorp.
It is believed Lendlease is running to a tight schedule to meet a May 27 deadline when it comes to its updating shareholders on strategy and there was a possibility this could be pushed out further.
The most likely outcome so far being discussed is one where Lendlease splits out its poorly performing assets into a separate structure within the business and effectively places them into run-off or selldown mode.
It comes as chief executive Tony Lombardo continues to face pressure from activist investors over performance, including John Wylie’s Tanarra.
It is believed his future will likely rest in the hands of the new chair, who would determine what executive is best to run the business.
Meanwhile, there have been reports in the market that Lendlease’s rivals are approaching top staff within its ranks in a quest to wrestle them out of the organisation with attractive offers to jump ship.
It comes at a time when attracting high quality staff in the construction industry remains challenging.
The Lendlease share price at $6.11 is at its lowest level since 2009 and its market value is $4.3bn. The shares traded at more than $20 in 2018.
Hurting the company has been tough industry conditions but also unprofitable development projects, particularly those offshore, as it looks to wind down construction in certain US markets and has sold assets to pay down its $2.4bn of debt and cut staff to slash costs.
Macquarie Capital, Morgan Stanley and Gresham are working on a plan to shape the company’s direction.
Lendlease builds large-scale projects, working on projects such as Sydney’s Barangaroo precinct, London’s Elephant Park urban renewal project, Singapore’s Paya Lebar Quarter and New York’s Claremont Hall, with a $103bn global development pipeline.
It has 47 developments globally and a construction business with an $8.3bn workbook.
It also has $48bn in funds and assets under management, including office, residential, retail, industrial and social infrastructure assets.
Its business is broken down into three reporting units: development, construction and investments. It made a $136m loss for the six months to December.
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