Lendlease strikes £144m UK joint venture with Crown Estate
Australian property developer Lendlease has agreed to transfer a 50% interest in six major UK urban regeneration projects into a joint venture with the Crown Estate, a UK sovereign property business managed independently on behalf of the monarch, in a transaction valued at A$300 million (£144.4 million). The deal is expected to unlock more than £22 billion in gross development value across London and Birmingham.
Announced on 19 May, the agreement marks a key step in Lendlease’s plan to simplify its international footprint and repatriate more than A$4 billion (£1.95 billion) in capital from offshore projects. The joint venture, one of the largest of its kind in the UK, is intended to release longer-dated capital at or slightly above book value and halve Lendlease’s future funding obligations on the sites to A$125 million (£60.2 million).
Under the agreement, Lendlease will retain development management responsibilities and earn cost-plus and performance-based fees. It will also maintain asset management rights for vertical developments where it retains a co-investment interest. Masterplanning and project delivery are expected to be self-funded through portfolio land sales.
“This partnership will create an industry-leading alliance that is expected to unlock value within our high-quality UK development portfolio while accelerating the release of capital for the group,” said Tony Lombardo, group chief executive officer of Lendlease.
The deal covers six high-profile regeneration projects, including the £5.5 billion over-station development at Euston in London; the £4.9 billion Silvertown Quays scheme in the Royal Docks; the £8 billion Thamesmead Waterfront project with Peabody, a UK housing association; the £1.9 billion Smithfield Market redevelopment in Birmingham; the £1.3 billion High Road West regeneration in Tottenham; and Stratford Cross in east London (formerly International Quarter London).
The schemes are expected to deliver around 26,000 homes and more than 900,000 sq m of commercial and life sciences space. The joint venture’s £22 billion development pipeline includes a significant portion of institutional-grade investment opportunities.
Lendlease anticipates a post-year-end profit from the transaction between A$10 million (£4.8 million) and A$30 million (£14.4 million).
The Crown Estate — a collection of lands and holdings in the UK belonging to the British monarch as a corporation sole — manages a £16 billion portfolio across central London, rural UK land, and the seabed. It said the joint venture aligned with its commitment to delivering long-term economic and social value.
“With strong support from local and national government, we look forward to working with Lendlease and others to realise the potential of these projects to create jobs, stimulate growth and positively impact lives while also generating income for the UK,” said Dan Labbad, chief executive officer of the Crown Estate and former head of Lendlease’s European operations.
The agreement comes as Lendlease accelerates its exit from low-returning international developments. The company has already offloaded its British construction arm, exited US military housing and construction, and sold its stake in infrastructure manager Capella Capital and multiple Australian housing estates.
It plans to reinvest in domestic precinct-scale and luxury residential projects where it sees higher returns. The transaction remains subject to regulatory and planning approvals and is expected to be completed during Lendlease’s 2026 financial year, which ends in June 2026.
