Bovis will become the centrepiece of Lend Lease's Asia Pacific, UK/Europe and US markets.
Lend Lease chief executive Greg Clarke said that this would create a simpler company that could focus on its strengths. Clarke said: "It is clear that what I would call the grand global strategy embarked upon several years ago has eluded successful execution, especially in the US real estate funds management market."
A source close to Bovis said that the UK business had become Lend Lease's jewel in the crown. The source said: "Bovis is like the cat that has got the cream."
A spokesperson for the contractor confirmed that the restructuring would result in 600 global job cuts at Lend Lease, including 40 from its office in Harrow, west London.
Bovis declined to comment further but John Spanswick, head of Lend Lease Europe, is known to have sent a memorandum to staff outlining the restructuring.
Lend Lease announced that Jill Ker Conway had stepped down as chair and had been replaced by non-executive director David Crawford.