Major new partnership from the Crown Estate and Lendlease with a Gross Development Value (GDV) of £24 billion will develop housing and science and innovation hubs and help create 100,000 new jobs and 26,000 new homes, backing the Government’s Plan for Change.
The joint venture allows The Crown Estate to invest in Lendlease’s undeveloped UK land and land management portfolio, providing support on existing projects, helping to transform the UK’s science, tech and innovation sectors and deliver new housing.
The projects have the potential to deliver around 10 million square feet of workspace and labs, and 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.
The pipeline is also hoped to deliver over 26,000 new homes for people across the country – of which a third are expected to be affordable housing – backing this Government’s plans to build 1.5 million new homes and get Britain building again as part of the Plan for Change.
In support of the partnership, the Chancellor and Minister for Investment met with Lendlease’s Group CEO Tony Lombardo and Dan Labbad, CEO of The Crown Estate in Downing Street
Chancellor of the Exchequer Rachel Reeves said: “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.”
Minister for Investment Baroness Gustafsson CBE said: “This is yet another strong endorsement of the UK’s investment environment and our thriving real estate sector as this government has committed to get Britain building again, a crucial part of delivering our Plan for Change.
“This pipeline and the creation of additional research labs across the UK, will be a massive boost for our world-leading science, innovation and technology sectors, all key growth sectors in our upcoming modern Industrial Strategy.”
The government’s upcoming modern Industrial Strategy will make doing business quicker, easier and more profitable than ever before. Its 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.
If the life sciences real estate markets of Cambridge, Oxford and London were to match their US counterparts by 2035, it could mean 67,000 more high-skilled, high-wage jobs and £4bn a year in additional GVA.
Areas poised for office and housing development include around Euston Station, Silvertown and Thamesmead Waterfront in London, as well as Smithfield in Birmingham.
The joint venture will provide a substantial boost to the UK’s thriving tech ecosystem, which is the third biggest in the world and worth more than £1 trillion.
Group CEO of Lendlease Tony Lombardo said: “This landmark partnership between our two organisations will combine our shared expertise in delivering city shaping precincts and creating long-term benefits for communities.
“As master developer, we look forward to working with The Crown Estate to unlock value within our UK development portfolio, for partners, government clients and our securityholders.”
Dan Labbad, Chief Executive of The Crown Estate, said: “With strong support from local and national government, we look forward to working with Lendlease and others to realise the potential of these projects to create jobs, stimulate growth and positively impact lives, while also generating income for the UK.
“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.”
