Lendlease Corporation has gone into business with the British monarch, selling its British property development assets into a joint venture with The Crown Estate to build new homes and develop science and innovation hubs.
Lendlease said the sale of the land holdings and management agreements would accelerate the release of more than A$300 million (US$195 million) of capital from its development book and halve future funding commitments to about $125 million.
The Australian property developer said the transaction was expected to release capital slightly above book value and contribute positively to future earnings through lower funding costs and the receipt of development management fees.
This brought Lendlease’s capital recycling initiatives to $2.5 billion in the 2025 financial year and provided progress towards launching a security buyback.
CEO Tony Lombardo said the partnership would create an industry leading alliance that was expected to unlock value within its British development portfolio while accelerating the release of capital.
“Since announcing our refreshed strategy in May last year, we have made strong progress to simplify the Group, reduce our risk profile, and recycle capital to be a more focused organisation,” Lombardo said in an ASX announcement.
The joint venture with Crown Estate, which manages King Charles' public property, was expected to accelerate planning and project delivery to provide housing supply for Greater London.
The British Government said the deal had the potential to create 26,000 new homes and 10 million square feet of workspace and labs.
Lendlease (ASX: LLC) shares closed down two cents (0.36%) at $5.51 on Monday, capitalising the company at $3.8 billion.
