Key Takeaways
- • Lendlease agreed to sell half-stakes in six UK development assets for more than A$300 million ($193 million) to form a 50:50 joint venture with the Crown Estate, according to the company's release.
- • Lendlease expects a profit of A$10 million to A$30 million on the sale and will halve its future funding commitments for the JV projects to A$125 million.
- • The JV projects are expected to deliver 26,000 homes and more than 900,000 square metres (9.7 million square feet) of office and life sciences space, with potential for up to A$24 billion in new investment products.
- • Lendlease began a A$1.2 billion ($770 million) investment mandate for South Korea's National Pension Service to manage Aurora Place, a Sydney office tower, lifting its Australian office funds under management to A$20 billion.
- • The transaction is subject to public authority consent and is expected to close in Lendlease's fiscal 2026, ending June 2026.
Summary
Lendlease announced on Monday the sale of six UK development assets into a joint venture with the Crown Estate, the property firm owned by King Charles III but managed for the benefit of the United Kingdom. According to the Sydney-based developer's release, Lendlease will sell half-stakes in the assets for more than A$300 million ($193 million), forming a 50:50 JV. The company anticipates a profit of between A$10 million and A$30 million on the sale and will halve its future funding commitments for the JV projects to A$125 million.
The assets include Lendlease's Stratford Cross land holdings in East London and land management agreements for Euston Station, Silvertown, Birmingham Smithfield, High Road West and Thamesmead Waterfront. The deal excludes Elephant Park, the Turing Building at Stratford Cross, Deptford Landings and residual inventory. The JV projects, spanning several London boroughs and Birmingham, are expected to provide 26,000 homes and over 900,000 square metres of office and life sciences space. Lendlease retains asset management rights for any vertical developments in which it holds a co-investment interest, with the potential for up to A$24 billion in new investment products from the portfolio.
CEO Tony Lombardo said the tie-up demonstrated progress in simplifying the group, reducing its risk profile and recycling capital. He noted Lendlease had completed or announced A$2.5 billion of capital recycling initiatives, achieved its cost-out target and exited international construction. Crown Estate CEO Dan Labbad, a former 16-year Lendlease employee, described the JV as an example of the Crown Estate harnessing its mandate to act in the UK's long-term national interest. Crown Estate holds more than A$30 billion in land and asset holdings across Britain and returns its profits to the UK government.
Separately, Lendlease disclosed the commencement of a A$1.2 billion ($770 million) investment mandate on behalf of South Korea's National Pension Service for the management of Aurora Place, a 44-storey Sydney Harbour-facing office tower that NPS purchased in 2010 for A$685 million. The mandate lifts Lendlease's Australian office funds under management to A$20 billion. The transaction is subject to the consent of certain public authorities and is expected to close during Lendlease's fiscal 2026, which ends in June 2026.
The assets include Lendlease's Stratford Cross land holdings in East London and land management agreements for Euston Station, Silvertown, Birmingham Smithfield, High Road West and Thamesmead Waterfront. The deal excludes Elephant Park, the Turing Building at Stratford Cross, Deptford Landings and residual inventory. The JV projects, spanning several London boroughs and Birmingham, are expected to provide 26,000 homes and over 900,000 square metres of office and life sciences space. Lendlease retains asset management rights for any vertical developments in which it holds a co-investment interest, with the potential for up to A$24 billion in new investment products from the portfolio.
CEO Tony Lombardo said the tie-up demonstrated progress in simplifying the group, reducing its risk profile and recycling capital. He noted Lendlease had completed or announced A$2.5 billion of capital recycling initiatives, achieved its cost-out target and exited international construction. Crown Estate CEO Dan Labbad, a former 16-year Lendlease employee, described the JV as an example of the Crown Estate harnessing its mandate to act in the UK's long-term national interest. Crown Estate holds more than A$30 billion in land and asset holdings across Britain and returns its profits to the UK government.
Separately, Lendlease disclosed the commencement of a A$1.2 billion ($770 million) investment mandate on behalf of South Korea's National Pension Service for the management of Aurora Place, a 44-storey Sydney Harbour-facing office tower that NPS purchased in 2010 for A$685 million. The mandate lifts Lendlease's Australian office funds under management to A$20 billion. The transaction is subject to the consent of certain public authorities and is expected to close during Lendlease's fiscal 2026, which ends in June 2026.
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