Australia’s Lendlease has formed a US$15bn (€13.3bn) partnership with Google to jointly develop three of the internet giant’s US landholdings in major districts in the San Francisco Bay area in California.
The venture, the single largest deal that Lendlease has done in its 61-year history, will see the Sydney-based property group working together with Google over the next 10 to 15 years to redevelop Google’s land in San Jose, Sunnyvale and Mountain View into vibrant mixed-use communities.
David Radcliffe, Google’s vice president, real estate and workplace services, said: “Today’s agreement expands on an existing and successful partnership that will help us deliver two important objectives.”
These are Google’s commitment to accelerate production of residential units in the Bay Area and its plan to build mixed-use developments
“Lendlease will play a key role in helping deliver at least 15,000 new homes on our land.”
Denis Hickey, Lendlease CEO Americas, said the joint agreement would help address the need for new housing in the San Francisco Bay Area.
“We’re eager to contribute our world-class approach to creating unique urban communities, and we are focussed on delivering outstanding places that redefine how people choose to live, work, connect and contribute to creating an active community,” he said.
Lendlease estimates that it will develop up to 15m sqft of residential, retail, hospitality, and associated community uses in the new neighbourhoods under the partnership. These projects will have an end value of around US$15bn.
Lendlease has been working with Google for more than two years to undertake the development and master planning of its land, valued at around US$750m.
Google will focus on developing its office space within the mixed communities.
Lendlease is currently completing construction of Google’s new UK headquarters in London’s Kings Cross.