The JV includes projects such as Stratford Cross, Euston Station and Birmingham Smithfield. Lendlease will remain responsible for managing the developments while the Crown Estate will provide funding.
According to Lendlease, the deal is expected to provide economic, social and environmental benefits including around 26,000 new homes and more than 900,000 sq m of prime office and life-sciences space.
Lendlease chief executive Tony Lombardo said: “This partnership will create an industry leading alliance that is expected to unlock value within our high-quality UK development portfolio while accelerating the release of capital for the Group.
“With our expertise in delivering city-shaping urban regeneration projects, the joint venture aims to deliver positive outcomes for our securityholders, communities and partners. “Since announcing our refreshed strategy in May last year, we have made strong progress to simplify the Group, reduce our risk profile, and recycle capital to be a more focused organisation.
“While we have completed or announced $2.5bn of capital recycling initiatives, achieved our cost out target and exited international construction, we have also grown our network of global capital partners. The Group is well positioned for future performance and growth for our securityholders.”
The deal with the Crown Estate forms part of Lendlease’s plan to divest of international assets and concentrate on its home market in Australia.
In April this year it completed the sale of its UK construction business to US industrial conglomerate, Atlas Holdings for £35m. The business has since reverted to its old brand name of Bovis.