Lendlease sells development rights to Milano mixed-use project

Australian multinational and real estate company Lendlease has announced the sale of its development rights for the Milano Santa Giulia (MSG North) mixed-use project in Milan, Italy.

Milano Santa Giulia

The buyer is an Italian investment group backed by Bizzi & Partners. The deal is valued at approximately $250 mln (€154.2 mln), comprising $90 mln (€55.5 mln) in cash for Lendlease's stake in the Heartbeat Fund and the assumption of $160 mln (€98.7 mln) in project debt by the buyer, who will also cover future remediation and infrastructure costs.

Although the sale is at a discount to book value and is expected to result in a post-tax operating loss of about $175 mln (€107.9 mln) in FY26 for Lendlease, it aligns with the company's strategy to divest from long-term, complex projects and reduce future capital commitments.

The transaction is contingent on third-party approvals. Lendlease has several other capital recycling initiatives underway, with some expected to be finalised by 30 June 2026.

The company maintains strong financial liquidity, with over $3 bn (€1.85 bn) at the end of HY26, and its Baa3 investment grade credit rating with a stable outlook was reaffirmed by Moody's in May 2026.

Group CEO, Tony Lombardo, said: “The sale of the commercially challenged MSG North project is consistent with our strategy to reduce long-dated international development capital and simplify the Group.”