Lendlease Group (ASX: LLC) shares are in demand on Thursday after the ASX-listed property group announced another major divestment.
At the time of writing, the Lendlease share price is up 5.84% to $3.08.
That adds to a better recent run for the ASX real estate stock, which has now climbed almost 10% over the past month.
However, shareholders are still sitting on some heavy losses in 2026. Lendlease shares remain down about 40% since the start of the year, showing just how much pressure the stock has been under.
Here’s what the company told the market today.
Lendlease sells Keyton stake
According to the release, Lendlease is selling its remaining interest in the Keyton Retirement Living Trust.
Current co-investor Aware Super will acquire Lendlease’s 25.1% interest for $525 million, with the net proceeds to be used to reduce group debt.
The deal is in line with the company’s half-year 2026 book value and remains subject to conditions, including regulatory approvals.
Lendlease is targeting completion in the first half of FY27.
Keyton is a retirement living business, and the sale adds another piece to Lendlease’s plan to simplify the group and recycle capital out of its non-core assets.
That has been a major focus for Lendlease as it works through its turnaround. Over the past year, sentiment has been weighed down by debt concerns, asset sales, and earnings pressure.
More capital recycling
The latest deal adds to a growing list of moves from Lendlease’s Capital Release Unit (CRU).
The company said it has now announced or completed more than $3.4 billion of capital recycling transactions since its May 2024 strategy update.
That includes asset sales across Australian communities, US military housing, international land and inventory, retail and office interests, and other holdings.
Management said the “focus remains on balancing value realisation with speed of execution.”
Can the recovery continue?
Today’s gain is a welcome change for Lendlease shareholders, but it doesn’t erase what has been a brutal year.
The stock is still down around 40% since the start of 2026, so the market is unlikely to get carried away on one deal.
The $525 million Keyton sale gives Lendlease more cash to reduce debt and keeps its capital recycling plan moving.
But there’s still a lot of work to do. The company needs to keep completing asset sales, bring debt down further, and avoid selling assets too cheaply.
Until that happens, the Lendlease share price could move sideways from here.
The post Lendlease shares jump 6% after $525 million deal. Is the worst over? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Lendlease Group right now?
Before you buy Lendlease Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lendlease Group wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 16 June 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today
- Lendlease offloads Keyton stake in $525m deal
- Lendlease Group shares paused pending further announcement
- 3 ASX 200 stocks leaping higher this week on big announcements
- ASX 200 slips as oil shock puts investors on edge
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.