A partnership between the Crown Estate and Lendlease worth £24 billion will help create 26,000 new homes and ‘vast’ new office space and labs, the government has announced.
As well as delivering new housing, the government says the joint venture will allow The Crown Estate to invest in Lendlease’s undeveloped UK land and land management portfolio, provide support on existing projects, and help to ‘transform’ the UK’s science, tech and innovation sectors.
Areas earmarked for office and housing development include Euston Station, Silvertown and Thamesmead Waterfront in London, as well as Smithfield in Birmingham.
The projects have the potential to deliver around 10 million square feet of workspace and labs, as well as deliver ‘vital investment’ in digital and technologies and the life sciences sectors – two of the key growth sectors in the government’s upcoming modern industrial strategy.
Chancellor of the Exchequer Rachel Reeves said of the partnership:
“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.”
The government says the modern industrial strategy will tackle the lack of housing and infrastructure in some areas that prevents labour markets from operative effectively:
“[The strategy’s] 10-year plan will provide business with the certainty they need to invest and innovate in the growth-driving sectors that will shape the UK’s economy, drive regional development, enhance living standards and create high quality jobs.”
“Businesses have identified that inadequate infrastructure has impacted the growth of UK firms, with the UK suffering from a chronic lack of lab space compared to other leading global hubs, but this pipeline will ensure high-growth sectors have the lab space, transport and housing they need.”
Dan Labbad, chief executive of The Crown Estate, commented:
“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.”
The Crown Estate has a diverse £16 billion portfolio that includes urban centres and development opportunities. Lendlease is an integrated real estate group headquartered in Sydney, Australia. Its core capabilities are reflected in the operating segments of investments, development and construction.
