Lendlease has entered a 50-50 joint venture with London’s oldest housing charity Peabody to deliver more than 11,000 homes in Thamesmead in south-east London.
The pair took eight months to finalise the details of the joint venture after the ASX-listed Lendlease was picked as Peabody’s preferred partner in February.
The £8 billion (A$15bn) urban regeneration project, set on a vast waterfront 250-acre site 18km south-east of London, is one of Britain’s largest urban renewal projects.
The Thamesmead Waterfront development masterplan will deliver a minimum 11,500 homes over a 30-year period and revitalise the existing Thamesmead town centre with the development of commercial, cultural and public space.
Thamesmead, which takes up 760 hectares, is the same size of central London. Peabody owns 65 per cent of the land after picking up the Thamesmead estate in 2014. Peabody began its search for a development partner in 2017.
The project is the charity’s largest development in its 157-year history.
The largely undeveloped Thamesmead is home to 45,000 people and one of London’s most famous social housing projects, commissioned by the London City Council in the 1960s.
The brutalist estate served as a dystopian backdrop to Stanley Kubrick’s A Clockwork Orange.
In announcing further details of the joint venture on Thursday, the partners called for a cross-river railway extension from east London to unlock the “full ambition” of the scheme.
“A new cross-river extension of the Docklands Light Railway to Thamesmead is critical [to] enable the 250-acre development to achieve its full potential,” a joint media release said.
Lendlease Europe chief executive Neil Martin said that the economic potential of the scheme is “enormous”.
“Thousands of new homes and jobs can be created, but key to its successful delivery is improving connections for existing and current residents and businesses.
“Improving transport links is a vital part of the long-term regeneration of the area, as it will bring those new homes within reach of the heart of London and help us deliver one of the most exciting new places to live in the capital.”
Peabody was founded in 1862 by American banker and philanthropist George Peabody. The organisation owns and manages more than 66,000 homes in London.