Lendlease has confirmed talks with The Crown Estate to form a UK residential development joint venture, following media speculation.
Lendlease said “negotiations are in the late stages” to enter a 50:50 joint venture to develop six London projects, which are part of its development portfolio.
Green Street News reported that the six sites are among some of the largest regeneration opportunities in the UK with a combined end value of more than £22bn (€bn) in a mix of more than 25,000 homes and more than 9m sqft of commercial space.
It also reported that the partners would be expected to source capital and partners.
Lendlease said: ”In line with Lendlease’s strategy announced in May 2024, the group is aiming to accelerate the release of capital from international development through capital partnering, joint ventures and land sales, while maximising the value it has created across the portfolio.
It said negotiations with the Crown Estate centred on releasing longer-dated capital “at or slightly above book value” to allow the company to “halve” its future funding obligations, accelerate master planning with [UK] government clients and generate future fee income.
If concluded, Lendlease will earn fees as master developer of existing projects.
To read the latest IPE Real Assets magazine click here.
