** Shares of LendLease Group LLC.AX fall as much as 3.6% to A$5.29, their lowest level since October 16

** Stock set for its weakest trading session since September 3, if current trends hold

** The integrated real estate business announced divestment of Australian retail portfolio on Monday

** Co to exit its co-investment in Australian Prime Property Fund Retail (APPFR), alongside other unit holders

** Market may form a view that the entire remaining APPF platform may also be at risk - Citi

** Brokerage retains "buy" rating on stock, sees near-term upside catalysts, driven by asset sales and buyback

** "We see the redemptions as creating opportunity for other fund managers and also providing pricing readthrough for larger malls once these transact," says Citi

** Stock down 15.1% YTD, including the day's moves

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com))