Lendlease Group (ASX:LLC) said it will sell six of its UK development assets, comprising land holdings and capital-efficient land management agreements, into a 50-50 joint venture with The Crown Estate, according to a Monday Australian bourse filing.
The firm will halve its future funding commitments to around AU$125 million, while continuing to meet its existing obligations relating to master planning and site enablement.
The joint venture projects are located in several London boroughs and Birmingham and include around 26,000 new residential dwellings and more than 900,000 square meters of prime sustainable office and life sciences space. Lendlease will be appointed as the development manager by the joint venture, and development management fees will be payable on a cost-plus and performance basis.
The deal is subject to conditions precedent, including public authority consents.
Neither partner is obliged to undertake any future vertical development, although each has the right to commit up to 50% of the capital per development. Lendlease retains asset management rights for any vertical developments where it maintains a co-investment interest.
It also began a AU$1.2 billion investment mandate in Australia for the management of Aurora Place, Sydney, on behalf of an existing investor, the National Pension Service.
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