From Barangaroo to Elephant Park: Inside Lendlease’s $112bn Pipeline

From Sydney’s giant Barangaroo to commercial precincts in Milan and brownfield urbanisation projects in London, Australian development and construction giant Lendlease has pushed its pipeline to $112 billion.

The company has come through a rough period marked by the underperformance of its trouble engineering division.

In its half-yearly results, the Sydney-headquartered company said it has made “significant progress” on its strategy focused on global cities with more than 80 per cent of its urbanisation pipeline outside of Australia.

All up, the company has an extensive development pipeline including sizeable urbanisation projects spanning 21 sites in nine global cities.

In Australia, the company has seven projects in the works, at an estimated value of $15.1 billion and is on track to deliver 8,000 residential units and 320,000sq m of commercial space.

Sydney's giant Barangaroo project was the first big step in a new direction towards landmark urban regeneration projects for Lendlease.

The company's three-tower One Sydney Harbour precinct in Barangaroo, which it landed in 2009, is currently 59 per cent complete with construction anticipated to wind up in 2026.

All three buildings, designed by Pritzker Prize-winning architect Renzo Piano, will have ground floor shops and amenities.

The three towers comprise 284,000sq m of office space as well as 1,008 residential units and 18,000sq m of new retail activity.

Lendlease received the green light for its 34-storey, $1 billion Melbourne Quarter Tower late last year which is set to be the centrepiece in its $3 billion Melbourne Quarter project.

The first tower, One Melbourne Quarter, is now fully-leased with tenants including Arup, AMP and Lendlease itself.

The precinct’s next commercial tower, Two Melbourne Quarter, is currently under construction. The 50,000sq m building is pre-committed by EnergyAustralia, expected to be finished by mid-2020.

The entire project, currently 23 per cent complete, will deliver 145,000sq m of commercial space, up to 1,500 apartments and 50,000sq m of retail.

The Brisbane Showgrounds project is a mixed-use development comprising residential, commercial office and retail with an estimated end value of nearly $2.8 billion.

The project, which is set to deliver 90,000sq m of commercial space, 2,963 residential units and 10,000sq m of retail, is currently 21 per cent complete, with expected completion anticipated by 2033.

The Victoria Harbour masterplan, designed by firm Jackson Clements, was approved by the planning minister in 2017.

More than 260,000sq m of commercial space has been delivered by Lendlease in the six-hectare waterfront precinct with further residential towers, Collins Wharf 2 & 3, set to deliver 659-apartments across two towers rising 28-storeys and 29-storeys.

Lendlease's new 57,000sq m Circular Quay tower in Sydney will become home to cloud-based software company Salesforce and will become Sydney’s tallest office building when completed in 2022.

The 53-storey building, joint venture between Lendlease, China’s Ping An Real Estate and Japan’s Mitsubishi Estate Asia, will also be one of the country's most sustainable buildings.

The new commercial precinct, which includes the site of the former landmark Sydney pub Jacksons on George, has been designed by architects Foster + Partners and will include 2,000sq m of retail spaces, a public plaza, a community building and public bike hub.

_{In delivery
• 57,000sq m office space
• 2,000sq m retail}

Lendlease's $1.3 billion Waterbank urban regeneration project on the edge of the Perth CBD, next to the Swan River, is tipped for completion in 2029.

The masterplan has been to transform an unused site on the banks of the Swan River next to the Causeway into a sustainable riverside drawcard with homes, cafes, shops, bars, water activities and natural landscapes.

The six-hectare Waterbank site will eventually be home to about 1,300 residential units, about 150 affordable housing units, as well as the office space and 2500sq m of retail and community uses.

_{Remaining stages
• 10,000sq m office space
• 1,308 residential units
• 2,000sq m retail}

Early last year the NSW government engaged Lendlease to deliver a new Sydney Metro railway station and commercial tower to be located in the North Sydney business district.

The Bates Smart-designed tower, expected to be completed in 2025, will weave together the station entry, an adjacent public space and a laneway at the base of the tower.

The over-station 40-storey tower will include about 58,000sq m of office and 2000sq m of ground floor retail space.

It's one of several lucrative metro station developments planned across Sydney. The metro system, with 31 stations, is expected to be up and running in 2024.

_{In delivery
• 58,000sq m office and retail}

The 7-hectare area being developed by Lendlease, formerly known as the Lifestyle Quarter of the TRX project, consists of 122,000sq m of retail space, which can accommodate about 500 new stalls, as well as 2,400 apartments across six towers, a hotel and small office space building.

The mixed-use development, set to be completed in 2027, is a 60:40 joint venture between Lendlease and TRX City Sdn Bhd.

Lendlease's Thamesmead Waterfront is a joint venture with London housing charity the Peabody Estate to build 11,500 homes and overhaul a town centre on a vast 100-hectare riverfront site in south-east London over the next 30 years.

The development includes 93,000sq m of new community and commercial spaces, includes 2.5km of undeveloped river frontage, and abuts Abbey Wood on the soon-to-be-opened Crossrail line connecting Heathrow to central London, the Docklands banking district and the south-east.

Lendlease was selected by the British authority High Speed Two to deliver the over-station Euston project, known as NW1, in 2018.

Lendlease will work with the Greater London Authority and London Borough of Camden to develop a masterplan for, and then deliver, a 54-hectare site above and around the new station.

In total, Lendlease will lead a regeneration of the 21.85 hectare commercial and residential district, which could span 2,000 residential units and 400,000sq m of commercial space.

A joint venture between Australian property heavyweight Lendlease and US property group Starwood will redevelop 20-hectare brownfield site in east London.

The development, dubbed Silvertown Quays, will create 650,000sq m of residential and commercial space, including 3,000 homes and the restoration of the historic Millennium Mills and the listed Silo-D building.

The masterplan, expected to be completed by 2032, will deliver 417,000sq m of office space, upwards of 3,000 residential units and 23,000sq m of retail.

Midway through last year Lendlease landed a $4 billion contract in Italy to develop a 100-hectare brownfield site north-west of Milan's business district into a mixed-use residential and commercial district.

The project, a public-private partnership between the Australian company and Arexpo, is one of two developments Lendlease is undertaking in Italy.

The site, which will be developed in several phases, will include 173,000sq m of office space, up to 2,600 residential units, student housing, 93,000sq m of retail and public realm.

There is also a “knowledge and innovation” theme, including a hospital, university and international research centre.

_{Remaining stages
• 173,000sq m office space
• 2,558 residential units
• 93,000sq m retail, leisure and arena}

Lendlease has been involved in the Milan Innovation District project since November 2017 when the masterplan was officially unveiled.

The 15-year multi-phased development will transform Milan’s former expo site to become MIND Milano Innovation District, a new precinct for science, knowledge, and innovation.

The project is expected to include 355,000sq m of commercial space, 946 build-to-rent units, up to 32,000sq m of retail and public realm. Once approved, work is expected to commence in 2021.

_{Remaining stages
• 355,000sq m office space
• 946 residential units
• 32,000sq m retail}

International Quarter, a multi-billion-pound mixed-use development, is one of the Australian group’s more advanced projects.

The new precinct being delivered by Lendlease and London Continental Railways is a vast commercial, retail and office space project.

Progress is well underway on the site with the first two residential towers finished and much of the office space already pre-let.

Lendlease, and the Canada Pension Plan Investment Board (CPPIB) are halfway through a major build-to-rent investment partnership in the UK worth an initial $2.6 billion.

The partnership will begin with an investment of £450 million in the next phase of new homes, which will be for private rent, at Lendlease's $4.6 billion Elephant Park development within Elephant & Castle in London.

The 11.3 hectare Elephant Park project in south London will deliver 55,000sq m of commercial space, and 3,200 residential units, 30 per cent of which will be for rent.

Lendlease has partnered with Google to develop 1.4 million square metres of residential, retail, hospitality and other projects in the San Francisco Bay Area.

Lendlease and the Silicon Valley company will redevelop Google’s landholdings near its headquarters in the San Francisco Bay Area, including building 15,000 new homes.

Google will focus on developing its office space within these mixed communities with the entire precinct set to be completed by 2037.

Located along the south branch of the Chicago River, the new Southbank neighbourhood includes five residential towers situated around a recently opened public park and riverwalk.

The first residential tower, dubbed The Cooper, will be a 29-storey, 452-dwelling, build-to-rent high-rise.

The Cooper will be the first of five new luxury residential builds Lendlease has planned for Southbank, its new South Loop development project.