Lendlease looks at royal joint venture

Lendlease has confirmed it is in the late stages of entering a joint venture with The Crown Estate - King Charles' property company in the United Kingdom.

In line with the property giant's strategy announced in May 2024, Lendlease said it is aiming to accelerate the release of capital from international development through capital partnering, joint ventures and land sales.

"Negotiations are in the late stages with The Crown Estate to enter a 50/50 joint venture for six development projects within Lendlease's UK development portfolio to release longer-dated capital at or slightly above book value, halve its future funding obligations, accelerate master planning with government clients and generate future fee income," Lendlease said.

Lendlease add that should the deal go through, Lendlease expects it will earn fees as master developer of existing projects on behalf of the joint venture, with the cost to progress mater planning and create further value expected to be elf-funding through portfolio land sales.

"Lendlease's immediate focus would be to continue to progress its master planning obligations, while retaining the rights for any vertical developments," it said.

"Lendlease expects the joint venture will create an industry-leading alliance with deep sector and local experience to accelerate planning and project delivery."

Lendlease added an announcement will be made should a binding agreement be concluded.

In FY23/24 The Crown Estate reported net revenue profit of $2.27 billion (£1.1 billion).

The Crown Estate's strategic focus is in areas where there are long-term structural challenges facing the UK and aims to invest in those that can generate value and financial returns for the UK, support the UK towards a net zero carbon and energy-secure future, take a leading role in stewarding the UK's natural environment and help to create inclusive communities through its activities supporting economic growth and productivity.