Just days after Lendlease announced it would sell $4 billion in United Kingdom and American projects and assets, the construction giant has landed a buyer for its vast interests across America’s East Coast.
On Thursday, Lendlease announced that it had agreed to terms with Consigli Construction Co (Consigli), which will take on 45 current, under-contract, and pre-construction projects.
In addition, the multi-generational Consigli will also take on Lendlease’s US-based workforce, who will transition to the new business.
Like Lendlease, Consigli is a major driver in mass timber construction and has been responsible for more than 20 cross-laminated timber and glulam projects in the Northeast alone.
According to Matthew Tonello, Consigli’s Director of Operations and expert in the firm’s use of mass timber: “Over the last three years, we have seen a 300% increase in the number of projects utilising and considering mass timber, not limited to CLT.”
Lendlease’s New York office was established in 1979, and it has worked on projects including the September 11 Memorial & Museum, Central Park Tower, Columbia University, Jacob K Javits Convention Center Expansion, and the American Museum of Natural History.
It is not yet known if the deal will see Consigli takeover Lendlease as a partner in the US Army’s Privatised Army Lodging (PAL) program – which will see Lendlease develop four hotel developments for the US Army out of cross-laminated timber.
Reflecting on the deal, Lendlease Americas CEO Claire Johnston said the team had achieved much in 45 years. For Consigli Construction’s CEO Anthony Consigli the agreement expands its portfolio with highly complementary projects to their existing ones.
“Consigli and Lendlease have a successful and long-standing relationship working as partners on many projects, and this acquisition is a natural fit,” Mr Consigli said.
The sale is consistent with Lendlease’s objective to divest its construction businesses in the US and UK during the next 18 months, lowering the group’s overall risk profile.
Lendlease chief executive Tony Lombardo said the announcement represented another step in simplifying Lendlease and creating a more focused company for security holders.
“It’s the culmination of more than 12 months’ work refining our US construction activities to focus on the US East Coast where we have a clear competitive advantage,” Mr Lombardo said.
Key contract terms remain commercial in confidence until transaction completion, expected in the first half of the 2025 financial year.
- To learn more about Lendlease’s new strategy, visit Wood Central’s special feature.
