Lendlease CEO says the COVID-19 challenges will last until 2022

Diving letter:

  • In a conference call on Monday, Tony Lombardo, CEO of Lendlease Global, said the COVID-19 pandemic has had a significant impact on the Australian company’s markets and projects and that the effects will be felt by 2022.
  • Construction activity has been hampered by delays in new projects, site closings and lower productivity, Lombardo said in a press release. These delays have also impacted the sale and rental of the company’s multi-family projects. Overall, the impact of the social distancing protocols on the company’s construction sites has resulted in a 16% decrease in sales and a 9% decrease in hours worked, the company said.
  • Despite the effects of the coronavirus loan after tax profit of A $ 222 million (US $ 161 million) for fiscal 2021, compared to a loss of A $ 310 million in 2020.

Dive Insight:

The company engaged in the construction of a $ 15 billion campus for Google in the San Francisco Bay Area, added three new projects to its US portfolio this fiscal year. They are:

The company’s projects in Australia have been impacted by recent government lockdowns aimed at containing an outbreak of the COVID-19 delta variant. The country reported record numbers of new coronavirus cases every day this month as the highly contagious Delta variant spreads to some of its largest cities.

About 15 million people in three states, or 60% of the population, have seen severe lockdowns in the past few weeks. to Al Jazeera, including in the cities of Brisbane, Melbourne and Sydney.

New stricter rules, which went into effect in Melbourne this week, limit large construction works to 25% of their usual workforce, while smaller projects employ a maximum of five people at a time. The age reported. The restrictions will affect tens of thousands of construction workers with lost wages of up to A $ 63 million per day, while according to The Age the industry is generally losing about A $ 455 million in revenue every day.

In Sydney, which was put on hold by the government for the sixth time since the pandemic began, some construction workers have recently been allowed to return to their jobs if they were vaccinated.

Australia did much better than many other countries in the developed world during the pandemic, with just under 37,000 COVID-19 cases and fewer than 1,000 deaths. according to Reuters.

“The lockdowns imposed by the pandemic continue to have a significant impact on real estate markets in the global gateway cities in which the group operates,” said Lombardo. “While we are confident that these cities will recover strongly in the medium term, FY22 is expected to be a challenging year.”

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