Confidence high after second major investment in Stratford development

Release date: immediate

Lendlease and LCR today announced the forward sale of a further 515,000 sq ft of commercial space to Deutsche Bank's asset management arm at The International Quarter - the £2.3 billion development at Stratford, which at a total of four million square feet is one of the largest new commercial developments in London.

The Financial Conduct Authority (FCA) building - which is in the early stages of construction - will sit in a prominent position at the gateway to Queen Elizabeth Olympic Park and is anticipated to house around 3,800 FCA employees from 2018. The building will comprise 19 floors of Grade-A office space and ground-floor retail, designed with the intention of obtaining a BREEAM 'Excellent' certificate.

Acquired on behalf of one of its German funds, the asset management business of Deutsche Bank will make staged payments of more than £370 million over the course of the development period. Lendlease and LCR will continue to manage the delivery of the building through the Stratford City Business District Ltd joint venture.

Dan Labbad, Chief Executive Officer, International Operations at Lendlease, said:

'Today's announcement with Deutsche Bank is further recognition of the remarkable opportunity created by The International Quarter. We have now announced investment totalling more than £615m in less than a month following the forward sale of 265,000 square feet of commercial space pre-let to Transport for London. This is great news for Stratford and further backing for our plans to build a world-class, healthy and flexible workplace in London's fourth major business district - which will also bring 25,000 new jobs to the area by 2025.'

David Joy, LCR Chief Executive, said:

'Confidence in The International Quarter is growing rapidly and we are delighted to see

investors of Deutsche Bank's calibre banking on Stratford. This is an unprecedented transformation of the area and a unique opportunity to be a part of Europe's most important strategic development.'

James Petit, Head of Real Estate, U.K. and Ireland, Deutsche Bank, said:

'Buying this building is a great opportunity to invest in one of London's emerging markets at an early stage and has great potential for strong growth as occupiers are attracted by the diversity and vibrancy of the area.'

The U.K. real estate business of Deutsche Bank's asset management arm currently holds EUR 5.4 billion in assets under management, and 60 properties as of September 30, 2015.

JLL represented Lendlease and LCR, and Capital Real Estate Partners represented Deutsche Bank.

ENDS

Photo credit: Lendlease and LCR / Hayes Davidson

NOTES TO EDITORS:

About The International Quarter

The International Quarter is a £2.3bn strategic development delivered by Lendlease on behalf of Stratford City Business District Ltd, a 50/50 joint venture between Lendlease and London and Continental Railways (LCR), owner and operator of St Pancras and Stratford International stations, along with much of the surrounding land.

At the heart of thriving Stratford and forming a gateway to the Queen Elizabeth Olympic Park, the development will offer a whole new working environment for London, giving employees access to transport, parklands, premium shopping and local housing. A number of world-class institutions have already made plans to set up a permanent presence in the area. UCL East will be the site of a new university campus for University College London (UCL), while Stratford Waterfront features a new campus for the University of the Arts London, along with major new spaces for the Victoria and Albert Museum and Sadler's Wells.

The site is one of the best-connected places in London with a unique combination of Underground, Overground, Mainline and DLR services. It is just eight minutes direct by train from the City. Stratford has been rezoned from TfL fare Zone 3 to Zone 2/3 from January 2016, recognising London's shift to the east.

For the commercial and residential stages, Lendlease and LCR have brought together an international team of designers including award-winning Rogers Stirk Harbour + Partners. The programme has already seen four trainees offered jobs at The International Quarter development in Stratford by the site's specialist contractor Prater.

About Lendlease

  1. Lendlease is a leading international property and infrastructure group. In the UK, it is the only fully integrated retail, residential and commercial provider delivering end-to-end property solutions. The company has core capabilities in development, investment management, construction, asset and property management.
  2. Lendlease is behind some of London's largest and most exciting mixed-use regeneration projects such as Elephant & Castle and The International Quarter.
  3. Lendlease is listed on the Australian Securities Exchange and operates in four key regions - Australia, Asia, Americas and Europe. The group has more than 12,400 employees worldwide.
  4. Lendlease is listed on the Dow Jones World Sustainability Index (DJSI) and in 2012 ranked in the top eight per cent of property companies, achieving scores of 90 per cent or higher in a range of categories.

About LCR

LCR is wholly owned by the DfT and specialises in the management, development and disposal of property assets within a railway context and, in particular, property assets associated with major infrastructure projects across England. LCR was responsible for the delivery of the High Speed 1 railway comprising St. Pancras International, Stratford International and Ebbsfleet.

Today, having divested of HS1, LCR's primary focus is in the area of property development and land regeneration. In London, LCR is a joint venture partner in the £2.3bn strategic development at The International Quarter, Stratford in partnership with Lendlease; whilst the organisation is also in the process of selling its share in the major regeneration programme at King's Cross, for which it has been a steward for almost two decades. In addition, LCR is working with the DfT and Network Rail to bring the Waterloo International terminal back into use and is exploring the potential for transforming the arches at Leake Street into a new dining and leisure destination.

Nationally, LCR and HS2 have established the HS2 Growth Partnership to work with local authorities, in line with their local HS2 Growth Strategies, to bring forward development around stations on the proposed HS2 route.

LCR is involved in a number of high profile development projects, many of which are a result of LCR taking ownership of BRB (Residuary) Ltd properties in 2013. These include the regeneration of the 24-acre Mayfield Quarter in Manchester and a substantial refurbishment of one of Derby's principal engineering employment centres, the RTC Business Park, which offers 430,000 sq ft of office and commercial accommodation.

http://www.lcrhq.co.uk/

Deutsche Bank - asset management real estate business

The real estate investment business within Deutsche Bank's asset management arm has been investing in real estate assets for more than 40 years. As part of the Alternatives and Real Assets platform, this business has more than 450 employees around the world and US$51.1/ €45.7 billion in assets under management as of September 30, 2015, and offers a diverse range of strategies and solutions across the risk/return and geographic spectrums, including core and value-added real estate, real estate securities, real estate debt and opportunistic real estate. The real estate investment business employs a disciplined investment approach and aims to deliver attractive long-term risk adjusted returns, preservation of capital and diversification to its investors, which include governments, corporations, insurance companies, endowments, retirement plans, and private clients worldwide. To learn more about our real estate investment capabilities, go to www.deutscherealestate.com.

An investment in real estate involves a high degree of risk, including possible loss of principal amount invested, and is suitable only for professional investors who can bear such losses.

Lend Lease Group issued this content on 2016-01-12 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-12 09:47:01 UTC

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