Australia’s Lendlease and Starwood Capital Group have partnered to buy a major urban regeneration site in London’s East End.

The partnership, through a managed fund, is acquiring The Silvertown Partnership from its existing shareholders First Base, Chelsfield Properties and Macquarie Capital on a 50% co-investment basis.

The Silvertown Partnership holds development rights in the urban renewal project Silvertown Quays. With an estimated end development value of £3.5bn (€4.0bn), Silvertown Quays will provide 7m sqft of residential and commercial space.

Lendlease said it will work as development manager and construction manager for Silvertown Quays.

Dan Labbad, the CEO of Lendlease’s international operations, said: “Working in partnership, we plan to create a place that’s innovative and environmentally sustainable, and will provide tangible benefits for the local community for the long-term. These are standards and commitments we apply to all our work and Silvertown Quays is no exception.”

Jeff Dishner, the global head of real estate acquisitions at Starwood Capital, said: “We are excited to partner with Lendlease on this prominent East London regeneration scheme that will help address London’s much needed affordable housing and private residential demand.

“Working with Lendlease, our vision is to invest significantly into the infrastructure around the site and create a completely new and creative neighbourhood that meets consumer demand, reinvigorates London’s East End and delivers for our investors.”