Lendlease has said it is making progress on selling its UK construction business which was put up for sale in May.
Building understands several private equity firms have been running the rule over the business with industry speculation growing that a deal will be done in the first weeks of the new year.
Among the issues private equity firms are believed to have raised are what sort of project guarantees they will be required to give clients on jobs.
It is understood Lendlease has made several presentations to would-be buyers recently ahead of a deal being inked in the new year.
The sale process is being handled by the group board, headed by chief executive Tony Lombardo, in Sydney.
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Lendlease bought the then Bovis in 1999 for £285m, dropping the name in 2011 as part of a rebrand.
One industry source said: “Most staff have sat tight which is a good sign. People are talking about a Bovis mark II.”
In a statement, a Lendlease spokesperson said: “We’re continuing to advance the divestment of our construction business, which boasts a proud history, a strong track record and a robust pipeline of future work in the UK. As the divestment process is still underway, we’re unable to provide further details at this time.”
In its last set of results filed at Companies House, Lendlease’s pre-tax profit slipped a third to £11.9m in the year to June 2023 on turnover down 8% to £509m. It said the fall in income was due to bidding less schemes over the covid-19 period but added that at its year-end it had £2.3bn of work at the preferred bidder stage.
