• Sale of 6 UK development projects into 50/50 joint venture with The Crown Estate
• Accelerates release of over $300 million of capital from Lendlease's international development book
• Joint venture to deliver ~26,000 new residential dwellings and 900,000 sqm of sustainable office and life sciences space

Lendlease today announces the sale of six UK development projects, comprising land holdings and capital efficient land management agreements, into a 50/50 joint venture (JV) with The Crown Estate, an independent commercial business tasked with returning its profit to the UK government. Through the transaction, Lendlease will accelerate the release of more than $300 million of capital from its longer-dated international development book and will halve its future funding commitments to ~$125 million, while continuing to meet its existing obligations relating to master planning and site enablement. The transaction is expected to release capital slightly above book value on completion and contribute positively to future earnings through lower funding costs and the receipt of development management fees. The JV, which was initiated by Lendlease with The Crown Estate, will create an industry-leading alliance with deep sector experience in delivering sustainable, city-shaping projects and is anticipated to accelerate planning and project delivery to provide much needed housing supply for Greater London and its residents. The delivery of JV projects, spanning a number of London boroughs and Birmingham, is expected to provide strong economic, social and environmental benefits, including approximately 26,000 new residential dwellings and more than 900,000 square metres of prime sustainable office and life sciences space. Lendlease will be appointed by the JV as the development manager with development management fees payable on a cost-plus and performance basis.

The renewed momentum in planning and land entitlement anticipated from the JV will help to accelerate the release of land parcels, with the sale of entitled land expected to self-fund master planning costs across the portfolio. Neither JV partner is obliged to undertake any future vertical development as it is anticipated that entitled land lots should be able to be sold to third parties, 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, with the potential for up to $24 billion of new investment product to be created from the JV's development portfolio, spanning sustainable office, build-to-rent and life sciences assets.