Lendlease Group (ASX:LLC) saw its stock price plummet by 5.09% during intraday trading, reaching its lowest level since March 13, 2009. The sharp decline comes in the wake of a New South Wales Supreme Court decision that rejected the company's claim to crucial land parcels intended for housing development in Sydney's south-west.

The court ruling, announced after market hours on Tuesday, does not support Lendlease's ability to exercise its contractual rights over certain land parcels in its Figtree Hill project. These parcels, originally part of a larger estate, were excluded from a recent $1.1 billion portfolio deal with Stockland due to unmet conditions and environmental challenges, particularly concerning the local koala population and the need for movement corridors.

In response to the adverse ruling, Lendlease has stated its intention to appeal the court's decision. The company is also continuing negotiations with the landowner for a revised agreement. If Lendlease fails to secure the land through appeal or negotiation, it faces a potential post-tax loss of up to AU$100 million (approximately $59.95 million), reflecting capitalized costs over the past decade. Despite this setback, Lendlease has confirmed that its earnings guidance for the fiscal year 2025 remains unchanged, provided the matter is resolved before the full-year reporting.