Lend lease restructures Australian business
25 October 2012
In the wake of an internal investigation into misreported profits at its subsidiary Abigroup, contractor Lend Lease has announced changes to its Australian regional structure and senior management team.
The company said Peter Brecht, Lend Lease’s former managing director of construction in Australia, had resigned. Lend Lease said two Abigroup executives had also stood aside during the recent investigation.
Effective immediately, Lend Lease said its Australian business would separate into two core areas – a construction and infrastructure division that will include Abigroup, and a property division. Mark Menhinnitt, current CEO of Australia, will now head up the construction and infrastructure Australia division as its CEO.
David Saxelby will continue as head of Abigroup, and become COO of the new construction and infrastructure Australia division.
Tarun Gupta, currently group head of investment management, has been appointed CEO of the new property Australia division, which incorporates the development and investment management businesses.
Lend Lease CEO and managing director Steve McCann said, "Our business in Australia now accounts for over 60% of our earnings, in line with our group strategy. Our operations in Australia now require a more focused structure to support the significant scale of this business and its future growth.”
The contractor concluded its investigation into Abigroup’s misreported profits in October, and said the two projects under scrutiny would have no material impact on its financial results or position.
