Lendlease, Starwood eye London Silver Quays development

Lendlease delivering on a promise of more major projects in international cities.

Lendlease has also won a project at High Road West in London’s Tottenham. Picture: AFP

Global developer Lendlease is delivering on its promise for more major projects in international cities and has teamed with US giant Starwood Capital Group to enter exclusive talks to buy development rights for a site in east London’s Royal Docks that could be worth £3.5 billion ($6.33bn).

Lendlease and Starwood are close to finalising a deal to take over the Silvertown Quays project, a 650,000sq m development that will include offices, homes and shops on a 25ha parcel, Bloomberg reports.

The two companies will take over the project from a consortium including Macquarie Group, Chelsfield Partners and London-based developer First Base, which was selected as development partner by the Greater London Authority in 2012.

The Silvertown Quays project seeks to redevelop a former industrial area between Canary Wharf and London City Airport and has been pitched as a £3.5bn precinct to become a technology hub.

About 3000 new homes will also be built and there will be a mix of private, affordable, shared ownership and built-to-rent. About 35 per cent will be affordable homes and residents should start moving in by 2020.

Lendlease is stepping up its activities in the British capital.

The company last Wednesday was announced as one of two groups vying to partner on the £4bn Thamesmead Waterfront site, a massive regeneration project in southeast London. British housing association Peabody named Lendlease and Morgan Sindall as the groups short-listed to support the 11,500-home Waterfront phase of the regeneration project.

About 100ha along 2km of previously undeveloped land on the southern bank of the River Thames will be overhauled over the next 15 years.

The developer last week also signed a deal to lead the £4bn urban redevelopment project around Euston station in central London, after seeing off four rivals, including Westfield.

The Euston redevelopment, known as NW1, is being overseen by British authority High Speed Two and will span up to 400,000sq m of commercial, retail and leisure space and 3800 homes.

Lendlease chief executive, international operations, Dan Labbad, said: “The transformation of the station and surrounding area will bring much-needed new homes and generate broader benefits for London and the UK.”

HS2 chief executive, Mark Thurston, said there was a “unique opportunity” to transform the wider Euston station site.

The company last month flagged it would invest half its capital offshore as it delivered a strong interim result. The group has shrugged off fears in some Australian cities about apartment settlements and is pressing ahead with mixed use projects globally.

Lendlease has also won a project at High Road West in London’s Tottenham with an end value $1.9bn that is expected to deliver more than 2500 homes.