Lendlease in $430m London deal

Lendlease has scored in a new UK project, with the forward sale of a major office building in International Quarter London.

International Quarter London, in the capital’s east.

Development and construction giant Lendlease has racked up another win in Britain’s capital, unveiling the £240 million ($429.3m) forward sale of a major office building at the International Quarter London in the city’s Stratford district.

The group, which is developing the tower with the LCR, pre-sold the tower to investment house DWS, as it bolsters its presence in Britain by winning a series of major urban regeneration schemes.

International Quarter, a multi-billion pound mixed use development, is one of the Australian group’s more advanced projects. Progress is well underway on the site with the first two residential towers finished and much of the office space already pre-let.

Investments by DWS and Legal & General totalled more than £615m for the first two commercial buildings, one of which TfL took over last September, while the other was handed to the Financial Conduct Authority in March.

The latest building, which is currently under construction, is at Redman Place in IQL and will sit at the gateway to Queen Elizabeth Olympic Park.

On completion in 2019, the building will become the new headquarters to both Cancer Research UK and the British Council, housing more than 2000 people.

IQL has had strong interest from potential tenants for the remaining space in both buildings acquired by DWS.

The investment house committed £370m to purchasing the FCA building in 2016 and charity UNICEF recently announced that it will move its British headquarters to the area.

Lendlease and LCR will manage the delivery of the latest building through the Stratford City Business District venture until delivery is complete, when management will transfer to DWS.

The Australian company is managing development and construction and advises the venture on capital markets.

Lendlease chief executive, international operations, Dan Labbad, said the precinct in London was being “totally transformed”. “Investors’ confidence is buoyed by the decisions of world-leading organisations, such as UNICEF and the British Council, to locate their headquarters at IQL,” he said.

Mr Labbad said that once complete in 2025, IQL would house 25,000 workers, as well as residential properties, shops, restaurants, bars and public spaces.

Earlier this month Lendlease teamed with Starwood Capital to acquire the £3.5 billion Silvertown Partnership development in London.

The pair, via a managed fund, acquired the site that has approval for about 650,000 sqm of residential and commercial space, including 3000 apartments.

Analysts said at the time the Silvertown venture grew Lendlease’s recent project wins in Europe to more than $20bn and selling the IQL tower would bolster company’s earnings.