The UK’s Crown Estate and Australian real-estate company Lendlease have signed a conditional agreement to form a new 50/50 joint venture (JV), pertaining to Lendlease’s undeveloped UK land management portfolio.
This move supports two main areas of focus for The Crown Estate: the creation of science, innovation, and technology spaces, as well as addressing housing needs within the UK.
The partnership is set to advance Lendlease’s existing master plans for the developments and is expected to provide essential infrastructure, create employment opportunities, and drive economic growth.
Specifically, the JV is poised to offer over ten million square feet of workspace, generate approximately 100,000 jobs, and construct around 26,000 new homes, encompassing rental and affordable housing options.
These projects are part of a real-estate development programme with a gross development value (GDV) of up to £24bn ($31.8bn).
Lendlease will maintain its role as the development manager across the portfolio while The Crown Estate will leverage its position to facilitate the establishment of the joint venture.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn the coming months, The Crown Estate will collaborate closely with Lendlease and other partners to meet the conditions necessary to finalise the agreement.
The portfolio encompasses six development projects in London and Birmingham. The first is a 60-acre site above and around Euston Station in London, which could yield approximately 4.3 million square feet of commercial space and 2,000 new homes.
Another 60-acre development is planned for Silvertown in London, with the potential for around 1.3 million square feet of commercial space and 6,300 new homes.
In Birmingham, a 40-acre space in Smithfield could provide over two million square feet of commercial space and 3,400 new homes. There are also three land plots in Stratford Cross, London, which could deliver over 1.6 million square feet of commercial space.
The JV aligns with The Crown Estate’s plan to invest up to £1.5bn in supporting the sectors over the next 15 years, as announced last year.
When combined with The Crown Estate’s existing investment and development pipeline, the businesses will have a combined pipeline with a GDV of approximately £44bn.
This includes the potential to provide up to 56,000 homes nationally in the long term alongside up to 19 million square feet of employment space.
This partnership follows the Crown Estate Act 2025, which provides The Crown Estate with new borrowing and investment powers to promote growth and generate greater returns for public funds.
Lendlease Group CEO Tony Lombardo said: “Our partnership with The Crown Estate 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.
“With our expertise in delivering city-shaping urban regeneration projects, the joint venture aims to deliver positive outcomes for our securityholders, communities and partners.”
In January this year, Lendlease entered a binding agreement with industrial holding company Atlas Holdings to divest its UK construction business.
