London/Sydney, May 19, 2025 — Lendlease Corporation has announced a landmark property deal with the Crown Estate, the body that manages the British monarch’s public property portfolio, forming a joint venture to deliver new housing and innovation-led developments across Greater London.
Under the agreement, the Australian developer will transfer its UK property development assets and management agreements into the new venture, a move designed to accelerate capital release and streamline its operations in the region.
The transaction is expected to unlock more than A$300 million (US$195 million) in capital from Lendlease’s development book and reduce its future funding commitments by half to approximately A$125 million.
Lendlease confirmed that the capital will be released at slightly above book value, and the structure of the deal will also contribute positively to future earnings through reduced funding costs and ongoing development management fees.
Strategic Shift and Capital Recycling
The move is part of Lendlease’s broader strategy to simplify operations and recycle capital. With this latest transaction, the company has now delivered A$2.5 billion in capital recycling initiatives in FY2025.
“This joint venture with The Crown Estate forms an industry-leading alliance, unlocking value across our UK development portfolio and enabling us to redeploy capital more efficiently,” said Lendlease CEO Tony Lombardo.
“Since announcing our refreshed strategy in May last year, we have made strong progress in simplifying the Group, reducing risk, and becoming a more focused and agile organisation,” he added in a statement to the Australian Securities Exchange (ASX).
A Royal Boost to UK Housing and Innovation
The British government has endorsed the partnership, which it says could deliver up to 26,000 new homes and 10 million square feet of commercial space including laboratories and innovation hubs—key priorities for the UK economy.
The Crown Estate, which operates independently but manages property assets on behalf of the monarchy, plays a central role in urban regeneration efforts across the UK. This deal represents a significant vote of confidence in the strength of the British development pipeline.
Market Reaction
Shares in Lendlease (ASX: LLC) closed down two cents (0.36%) at A$5.51 on Monday, valuing the company at approximately A$3.8 billion.
The transaction also lays the groundwork for a potential share buyback, with proceeds helping to further strengthen the balance sheet and return capital to investors.
King Charles III Picture by UK Government on Wikimedia
