Shares in property and construction giant Lendlease have plummeted after it sold a stake in its retirement living business and forecast a fall in earnings from its Australian construction business.
Lendlease is selling a 25 per cent stake in its business that owns and operates retirement villages to privately owned investment firm APG Asset Managment NV, and said a requirement to write down the value of certain deferred tax assets associated with the business would result in the deal delivering a net loss of about $35 million.
In a market update issued late on Tuesday, Lendlease also said its financial performance in the 2017/18 financial year would be impacted by the underperformance of its Australian construction business, which is related to a small number of engineering projects.
Annual earnings in the Australian construction business are expected to be lower than in 2016/17, though Lendlease said that would be offset by improvements in other parts of its business.
Shares in Lendlease were down $1.93, or 10.4 per cent, at $16.67 at 1320 AEDT, after recently hitting a near 10-year high.
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