The sale of a further 24.9% of its retirement village portfolio has not pacified an influential Lendlease shareholder activist.

Tanarra Capital has written to Lendlease CEO Tony Lombardo (pictured) instructing him to sell the Retirement Living portfolio or sell its interests to less than 10%.

It is one of seven points Tanarra Capital said Mr Lombardo had to make to boost Lendlease’s share price from about $11 to around $25.

Tanarra Capital, founded by Principal John Wylie AM, states its “friendly” shareholder activism presentation against Lendlease is similar to the one it launched against Boral in late 2019, which resulted in Boral shareholders earning returns exceeding 70%.

“Lendlease’s total shareholder return over the past five years has been very weak at minus 21 per cent, lagging the S&P/ASX 300 by 85 per cent,” the presentation says.

Mr Lombardo said he always welcomes shareholder feedback.

“I do think we’ve got a really good strategy in place and there’s been momentum building over the last 12 months,” he said.

Lendlease reduced its equity in its 75 retirement villages with more than 16,000 residents, to 25.1% after selling 24.9% to Australia’s third largest superannuation company, Aware Super. Dutch pension fund manager, APG Asset Management, holds a 25% stake bought five years ago.

Lendlease has been trying to reduce its involvement in retirement living for seven years.