The Crown Estate has invested A$300m to (€172m) a 50:50 UK joint venture with Lendlease to develop six projects in London and Birmingham, with a further A$125m commitment planned over the next five years as its share of the development costs.
Lendlease’s UK projects portfolio, which includes residential and life science offices, will have an end-value of close to A$49bn (€28bn).
The projects were assembled over the past decade by the Sydney-based company, which is in the final phase of selling down its international operations under a new strategy for the business.
Dan Labbad, CEO, The Crown Estate, said: “As a country, we face challenges to unlocking growth. To support this, we need to spark investment in sectors like science, technology, and housing, alongside deep collaboration across communities, government, and the private sector.
“This joint venture is an example of how The Crown Estate is harnessing its mandate to act in the UK’s long-term national interest, supported by new investment powers, and stepping up its ambition to support inclusive growth for the nation.”
Tony Lombardo, Lendlease Group CEO, told IPE Real Assets: “Through this transaction, we have released A$300m of equity invested in this portfolio. There is a requirement to spend A$250m over the next five years.”
He said the joint venture would look to selling land to third-party developers and seek out capital partners. The partners have an option to sell down a further 25% of the joint venture after three years.
Lombardo added with this transaction, Lendlease had accelerated the release of capital bringing the total raised, so date to A$2.5bn, just shy of its target of A$2.8bn for 2025 financial year.
Three more transactions are pending. These are a large mixed-use project in Kuala Lumpur, a residual 25% stake in retirement business in Australia and its senior living asset in Shanghai, Ardor Gardens.
If their sales were finalised in coming months, Lombardo said, they would free up around A$1bn of capital.
NPS entrusts Lendlease with A$1.2bn Aurora Place office tower in Australia
Korea’s National Pension Service (NPS) has appointed Lendlease to manage the A$1.2bn (€686m) Aurora Place office tower.
NPS bought the office tower in Sydney in 2010, for A$685m.
The latest mandate extends an existing relationship where Lendlease manages NPS’s A$1.2bn Melbourne Quarter property acquired in 2021.
A key focus of Lendlease’s change in strategy is to increase its funds under management. The group currently has close to A$50bn under management across all asset classes and it aims to lift that figure to A$70bn by the next financial year.
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