Lendlease is in talks with the Crown Estate, the King's property company, to enter into a 50-50 joint venture for six development projects in its UK development portfolio.
The six sites have a combined end value of more than £20 billion, propose more than 25,000 homes and over 9 million square feet of commercial space.
In an Australian stock market announcement, Lendlease said the talks were in line with a strategy announced in May 2024 to release capital from international development through capital partnering, joint ventures and land sales, as it retrenches from the international stage and focuses its business principally on its native Australia, as reported.
Green Street News first reported on the talks.
Lendlease said: "Negotiations are in the late stages with The Crown Estate to release longer dated capital at or slightly above book value, halve future funding obligations, accelerate master planning with government clients and generate future fee income."
If concluded, the arrangements being negotiated would see Lendlease earn fees as master developer of existing projects on behalf of the joint venture, with the cost to progress master planning and create further value expected to be self-funding through portfolio land sales.
Lendlease said its immediate focus would be to continue to progress its masterplanning obligations, while retaining the rights for any vertical developments. It said an announcement will be made should a binding agreement be concluded.
The six sites where Lendlease is development partner are: the £4.9 billion Silvertown Quays project, in the Royal Docks; the 11,500-home Thamesmead and 2,500-home High Road West estate regeneration projects; the under development 2.5-million-square-foot Stratford Cross office scheme at the Olympics park in east London; and the 42-acre Smithfield Market site in Birmingham. It is the master development partner for the £5.5 billion over-station development of Euston Station.
The deal would be a major statement of intent by the Crown Estate since the reigning monarch's property company was inherited by King Charles III. The company's £16 billion portfolio is principally focused on London's Regent Street and St James's as well as the country's sea front.
For a review of the Crown Estate, its history and portfolio click here.
The chief executive of the Crown Estate Dan Labbad was European chief executive at Lendlease before moving to the Crown in 2019.