(Updates to add stock movement in the headline and last paragraph)
Lendlease Group (ASX:LLC) agreed to sell its development rights to the Milano Santa Giulia mixed-use development in Italy to an investment group sponsored by local developer Bizzi & Partners for about AU$250 million, according to a Monday filing with the Australian bourse.
The transaction also includes the acquisition of the company's units in the Heartbeat Fund for AU$90 million in cash and assuming project debt of AU$160 million, the filing said.
The sale is anticipated to result in a post-tax operating loss of roughly AU$175 million, to be recognized within the capital release unit in fiscal year 2026, per the filing.
The company's shares fell around 3% in recent Monday trade, earlier hitting a record low.