Lendlease Fund Management Boss Justin Gabbani to Exit Amid Executive Shake-Up

Lendlease investment management CEO Justin Gabbani will step down at the end of June and leave the Australian property group after more than two decades with the company, marking the latest senior executive exit at the developer and fund manager as it struggles to restore investor confidence following a strategic overhaul.

Gabbani, who also chairs the manager of Singapore-listed Lendlease Global Commercial REIT, is leaving the Sydney-based group “to pursue an external opportunity”, according to a filing by the manager. Gabbani, 44, will step down from his role as chairperson and director of Lendlease REIT effective 30 June, ending a tenure on the board that began in October 2021.

“The board would like to express its sincere appreciation and gratitude to Mr Gabbani for his leadership and invaluable contributions to the manager and the company throughout his years of service and wish him every success in his next chapter,” the manager said Monday.

The departure continues a recent exodus of top management from Lendlease, following the planned exit of group CEO Tony Lombardo, who is set to join Frasers Property as chief operating officer in October, and the April departure of development CEO Tom Mackellar, who was succeeded by Claire Johnston and is said to be joining data centre operator AirTrunk to lead Asia expansion.

Longtime Executive

Gabbani was appointed chief executive for investment management in July 2024 and was tasked with overseeing strategy and operations for Lendlease’s global funds business.

Before taking that role, Gabbani served as chief executive for Asia, overseeing the group’s investment management, development and construction businesses across the region. He had replaced Lombardo as the Singapore-based Asia CEO in 2021 after Lombardo relocated to Sydney to become group chief executive.

Gabbani joined Lendlease in 2003 and has worked across strategy, capital markets, corporate finance, development and construction in Asia Pacific and Europe during a career spanning more than 20 years with the company.

His exit comes as Lendlease attempts to stabilise its balance sheet and reposition the business after years of volatile earnings, project write-downs and investor frustration over weak returns.

The builder and investment manager announced a sweeping turnaround strategy in 2024 focused on shrinking its international footprint, reducing debt and concentrating on its Australian home market after years of expansion into overseas development and capital management businesses.

Lendlease aims to make the start of its fiscal 2027 on 1 July a turning point from which the group can enter a “renewed era of growth”, though the company continues to face pressure from asset impairments and sluggish capital raising conditions.

Lendlease posted a loss of A$318 million ($225 million) for the six months ended 31 December, reversing a year-earlier profit of A$48 million as non-cash revaluations and impairments totalling A$118 million weighed on results.

Capital Strains

The earnings setback followed a string of challenges across Lendlease’s investment management platform, including weaker property valuations and subdued investor appetite for fresh capital raisings.

In March, Lendlease REIT completed a heavily discounted S$153 million ($113 million) preferential offering to help fund the acquisition of an additional stake in Singapore’s Paya Lebar Quarter Mall after investors subscribed for just 62 percent of the deal, forcing sponsor Lendlease to absorb the shortfall.

Lendlease REIT’s units have weakened on the SGX since early February, when the trust’s six-month results showed a year-on-year drop in gross revenue and net property income after the S$462 million divestment of the Jem office block in western Singapore.

Those difficulties added to broader concerns over the health of the group’s fund management operations, which had previously been positioned as a key earnings driver alongside its development and construction divisions.

The latest leadership reshuffle leaves Lendlease facing a critical transition period as the company works to rebuild market confidence, execute asset sales and convince investors that its Australia-focused strategy can restore sustainable profitability after years of turbulence.