OZ Co Cuts $21 Billion Google Deal
Lendlease has signed a A$21 billion (US$15 billion) deal to redevelop 15 million square feet of land owned by Google in California into three Silicon Valley mini-communities.
The biggest project in Lendlease’s history, the deal is expected to boost its total development pipeline from $75 billion to $100 billion, according to The Australian.
“Lendlease and the Silicon Valley company would jointly undertake projects to redevelop Google’s landholdings in the San Francisco Bay Area,” Lendlease said in an official statement.
“The projects will include 15 million square feet of new mixed-use neighbourhoods featuring 15,000 new homes, as well as office, retail and hospitality developments in San Jose, Sunnyvale and Mountain View.”
“The total value of the deal was about $15 billion and the engagement would take about 10-15 years to complete.”
Google will be handling the office development in the three precincts, while Lendlease will deal with the masterplan and other aspects of the project such as residential units, retail and hospitality.
Work is expected to begin as early as 2021, pending planning approvals and development work.
“This joint agreement between Google and Lendlease will help address the need for new housing in the San Francisco Bay Area,” xlaims Lendlease.
Lendlease’s shares rose 4.5% in early morning trading following the announcement – its highest point since September last year.