Lendlease finalises JV with The Crown Estate

Lendlease has finalised its 50/50 joint venture with The Crown Estate, selling six of its UK development projects comprising land holdings and capital efficient land management agreements.

Through the transaction, Lendlease will accelerate the release of more than $300 million of capital from its longer-dated international development book and halve its future funding commitments to around $125 million, while continuing to meet its existing obligations relating to mater planning and site enablement.

The transaction is subject to conditions precent, but Lendlease said the parties are working to satisfy the conditions in FY26.

Lendlease added hat the transaction is expected to release capital slightly above book value on completion and contribute positively to future earnings through lower funding costs and the receipt of development management fees.

"The JV, which was initiated by Lendlease with The Crown Estate, will create an industry-leading alliance with deep sector experience in delivering sustainable, city-shaping projects and is anticipated to accelerate planning and project delivery to provide much needed housing supply for Greater London and its residents," Lendlease said.

"The Crown Estate is an ideal partner, with more than $30 billion of core land and asset holdings across the UK and a commitment to deliver profitable, long-term national outcomes."

Lendlease chief executive Tony Lombardo said announcing a fresh strategy last year, Lendlease has made strong progress to simplify the group, reduce its risk profile and recycle capital to be a more focused organisation.

"While we have completed or announced $2.5 billion of capital recycling initiatives, achieving our cost out target and international construction, we have also grown out network of global capital partners," Lombardo said.

"The group is well positioned for future performance and growth of our securityholders."