Australian property firm LendLease lands $15 billion deal with Google

(Reuters) – Australian construction firm LendLease Group (LLC.AX) on Thursday said it has secured a contract from Alphabet Inc’s (GOOGL.O) Google to jointly undertake development of properties worth $15 billion in the U.S. state of California. LendLease in a statement said it will jointly take up the master planning, entitlement and development of three major areas in the San Francisco Bay Area with the technology giant. The firm said it will develop up to 15 million square feet (1.4 million square meters) of residential, retail and hospitality space plus associated amenities in the new neighborhoods, and that Google will focus on developing its office space within these communities. Under the terms of the agreement, LendLease and Google will work together for the next 10 to 15 years to redevelop the U.S. company’s landholdings in San Jose, Sunnyvale and Mountain View, the Australian developer said. Development work could start as early as 2021, it said. In LendLease’s statement, Google Vice President of Real Estate and Workplace Services David Radcliffe said the agreement would boost the technology firm’s plan to “accelerate the production of residential units in the Bay Area” as well as “to build mixed-use developments”. “LendLease will play a key role in helping deliver at least 15,000 new homes on our land,” Radcliffe said. The agreement will be a major boost for LendLease, which in February reported a 96.3% drop in first-half profit, hurt by the underperformance of its local engineering and services businesses amid significant headwind in the local housing market.

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