One of Australia´s largest property developers, Lend Lease, has announced it is scaling back investments and taking a more basic approach to its business strategies. The company, which will be abandoning projects in the United States and Europe, said it wants to focus its energies on Bovis Lend Lease in Asia, the United States and Britain, and Australian funds management.
Despite assurances from Lend Lease that it will report A$226 million profit, excluding one-offs, and that it will buy back 10 percent of its stock, share value dropped by 2.8 percent following its announcement. CEO Greg Clarke believes that the multiple businesses led to the failure of the global expansion plan, saying that the Real Estate Investment business in the United States had a poor outlook. Clarke hopes the new simpler approach to its strategies will better serve the company in the future.