The Crown Estate, the reigning UK monarch's property company, and Lendlease have entered into a conditional agreement to create a joint venture partnership focused on Lendlease’s up-to-£24 billion undeveloped UK land management portfolio.
The Crown Estate said in a statement that its 50-50 joint venture aligns with two of its core areas of strategic focus: supporting the development of science, innovation and technology space, and unlocking housing in the UK. The partnership should progress Lendlease’s existing masterplanning across the developments.
The joint venture said it has the potential to deliver over 10 million square feet of workspace including science, innovation and technology spaces, more than 100,000 jobs and around 26,000 homes – including rental and affordable – set across a programme of real estate development with a gross development value of up to an estimated £24 billion.
Lendlease will continue to act as the development manager across the portfolio. The Crown Estate said it will use its position to support the joint venture’s establishment, working closely with Lendlease and other partners over the months ahead to help satisfy the conditions required to complete the agreement.
The portfolio contains six development schemes across London and Birmingham:
- 60 acres above and around Euston Station in London, with the potential to deliver circa 4.3 million square feet of commercial and 2,000 homes.
- 60 acres in Silvertown in London, with the potential to deliver 1.3 million square feet of commercial and 6,300 homes.
- 40 acres in Smithfield in Birmingham, with the potential to deliver over 2 million square feet of commercial and 3,400 homes.
- Three land plots in Stratford Cross, London, with the potential to deliver over 1.6 million square feet of commercial.
- 250 acres of residential space in Thamesmead Waterfront, London, with the potential to deliver over 11,000 homes and 880,000 square feet of commercial.
- 27 acres in High Road West in Haringey, London, with the potential to deliver over 100,000 square feet commercial space and around 2,800 new homes.
The joint venture forms part of The Crown Estate’s ambition to invest up to £1.5 billion to support the technology and housing sectors over the next 15 years, announced last year.
The deal is 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.
Last Thursday Lendlease in an Australian stock market announcement had 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.
Labbad said in a statement: “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.
“As a country, we face challenges to unlocking growth. To support this, we need to spark investment in sectors like science, technology, and housing, alongside deep collaboration across communities, government, and the private sector. This joint venture is an example of how The Crown Estate is harnessing its mandate to act in the UK’s long-term national interest, supported by new investment powers, and stepping up its ambition to support inclusive growth for the nation.”
Tony Lombardo, group chief executive of Lendlease, 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.”
Chancellor of the Exchequer Rachel Reeves said: “We are pulling every lever to grow our economy so we can put more money in people’s pockets, boost home ownership and make Britain a global hub for life sciences through our Plan for Change.
“This includes creating the right environment for organisations like The Crown Estate and Lendlease to partner, helping us to unlock capital to get Britain building and get Britain growing.”
Minister for investment Baroness Gustafsson said: “This is yet another strong endorsement of the UK’s investment environment and our thriving real estate sector as this government has committed to get Britain building again, a crucial part of delivering our Plan for Change.
“This pipeline and the creation of additional research labs across the UK, will be a massive boost for our world-leading science, innovation and technology sectors, all key growth sectors in our upcoming modern Industrial Strategy.”
When combined with The Crown Estate’s existing £1.5 billion investment in the science, innovation and technology sectors over the next 15 years and development pipeline of up to 30,000 homes, the businesses will have a combined pipeline with a gross development value of £44 billion. This includes the potential to deliver up to 56,000 homes nationally in the long-term – spread between the capital and regionally – and up to 19 million square feet of employment space.
This partnership follows the Crown Estate Act 2025, which was passed earlier this year. The legislation gives The Crown Estate new borrowing and investment powers to further stimulate growth and generate greater returns for the public purse.