Brookfield offloads construction giant Multiplex to Japan's Obayashi for $924m after years of losses

Canadian investment group Brookfield has agreed to sell Australian-founded global construction firm Multiplex to Japan's Obayashi Corporation for US$650 million ($924.5 million), drawing a line under a turbulent ownership period that saw the company rack up hundreds of millions of dollars in losses driven by cost blowouts, insolvencies across the sector and the troubled Queen's Wharf Brisbane casino project.

The deal, which includes US$530 million in cash on closing plus an earn-out component, marks a dramatic retreat from the domestic construction sector for Brookfield, which originally acquired Multiplex in 2007 for $4.2 billion.

Following its acquisition, Brookfield spun out Multiplex's real estate assets and facilities management business, leaving the group as a standalone construction business as part of Brookfield Business Corporation, the flagship listed vehicle of Brookfield’s private equity group in 2016.

Obayashi, one of Japan's largest construction groups, will gain Multiplex's operations across Australia, the United Kingdom, Canada and India, along with a workforce and project pipeline spanning major commercial, residential and infrastructure developments.

“The transaction delivers a strong outcome for our shareholders, demonstrating our ability to continue recycling capital and support the growth of our business," says Anuj Ranjan, CEO of Brookfield’s Private Equity Group.

"Multiplex is a leading global construction business with a track record of delivering some of the most complex large-scale projects in the world.

"Since acquiring it, we have worked with management to sharpen operational focus, strengthen profitability and reposition the business for its next chapter."

The business has delivered some of the world’s most complex and iconic developments across the commercial, residential, healthcare, infrastructure, hospitality and mixed-use sectors, including Wembley Stadium in London and the recently completed Sydney Fish Market.

"This transaction represents a significant milestone in advancing our strategy to expand our business globally, particularly in key markets such as Australia, the United Kingdom and Canada," says Toshimi Sato, CEO of Obayashi Corporation.

“Multiplex is a highly respected contractor with a strong track record of delivering complex, high-quality projects, and we have long admired its technical capabilities and market position. 

"By combining our respective strengths - including engineering expertise, client networks and financial resources - we are confident that this partnership will enable Multiplex to accelerate its growth and further strengthen its position in its core markets, while contributing to the sustainable growth of the Obayashi Group.”

Multiplex Global CEO John Flecker has described the deal as a "milestone moment" for Multiplex which was founded in 1962 by John Roberts in Perth.

"There is a clear alignment of values and aspirations between Multiplex and Obayashi, a firm established more than 130 years ago, and we see significant opportunity ahead," says Flecker.

"Our operations, projects and brand remain unchanged, and our leadership team will continue to lead the business into its next chapter.”

The sale comes after Brookfield was earlier this month reported to have been forced to prop up Multiplex with more than $500 million in cash injections over three consecutive loss-making years.

The parent company tipped in $56 million in 2023, $241 million in 2024 and a further $220 million in calendar year 2025 to keep the builder afloat as Australia's construction sector buckled under a wave of insolvencies, rising input costs and project delays.

Multiplex posted a net after-tax loss of $219.5 million for calendar year 2024 despite revenue surging 33 per cent to $4 billion.

The result was driven largely by a $192.6 million write-off on Queen's Wharf Brisbane, where costs blew out from an original $2.6 billion to $3.6 billion.

The broader construction sector provided no shelter with construction insolvencies across Australia rising 17 per cent during the period, led by builders large and small succumbing to fixed-price contracts signed before the pandemic-era spike in materials and labour costs.

The transaction is subject to customary regulatory approvals and is expected to close in the coming months.