Under the terms of the agreement, Lendlease will receive £35m cash consideration, including £10m deferred until June 2026.

Overall the deal is expected to be profit-neutral for Lendlease after taking into account retained risks on projects that have completed or substantially completed prior to exchange of the sale agreement.

Atlas will acquire Lendlease’s construction business and its operations including existing staff and the present leadership team, ensuring a seamless handover for clients and business partners.

Founded in 2002, Atlas and its affiliates own and operate 26 companies, including cladding contractor Permasteelisa.

Its conglomerate of companies turnover $16bn annually employing more than 50,000 staff across 350 facilities worldwide.

Lendlease Group CEO Tony Lombardo said: “This transaction builds on our progress to simplify Lendlease as we look to lower our risk profile and increase securityholder returns.”

Peter Bacon, Atlas operating partner, said: “We are excited to acquire one of the UK’s leading construction companies, which has a long track record of successfully delivering large complex projects for both private and public sector clients.

“We look forward to working with David Cadiot and his team continuing to build the business.”

Completion of the transaction is subject to regulatory approvals, with completion targeted before the end of the Australian financial year in June 2025.

Lendlease’s UK Construction business was founded in 1885 as Bovis Construction and acquired by Lendlease in 1999.

Latest accounts for Lendlease Europe, which largely represents the UK, revealed construction revenue fell 17% to £380m with EBITDA up from £2m to £5.6m in the year to June 2023.

The pre-tax figure stood at a loss of £124m, due to additional building safety writedowns. Overall the headcount stood at just over 1,200 staff with around two-thirds involved with construction.