Lendlease and LCR today announced the forward sale of 265,000 square feet of commercial space to Legal & General 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 Transport for London (TfL) building - which is in the early stages of construction - will sit at the gateway to Queen Elizabeth Olympic Park and will house 3,000 TfL employees from autumn 2017. In acquiring the building, Legal & General will make staged payments over the course of the development period up to a total consideration of circa £245 million. Lendlease and LCR will continue to manage the delivery of the building through the Stratford City Business District Ltd joint venture.

Confidence continues to grow in The International Quarter. In addition to the agreements for lease and forward sale of the TfL building, the Financial Conduct Authority (FCA) has also committed to 425,000 sq ft of space to move its headquarters and 3,800 employees to Stratford in 2018. Lendlease and LCR are also in advanced discussions with a number of other major commercial tenants about moving to the development.

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

'Lendlease is creating some of the best places around the world. The International Quarter will add to this legacy, providing some of the most agile, healthy and flexible workplaces in Europe. Today's announcement illustrates the confidence the investment market has in this approach and the opportunity presented by The International Quarter, London's fourth major business district. This is a fantastic example of how the Olympic legacy continues to bring lasting prosperity and employment opportunities to East London.'

David Joy, Chief Executive of LCR, said:

'Today's announcement unlocks further value from The International Quarter, a major new employment hub in East London. Our partnership with Lendlease will bring 25,000 new jobs to the area by 2025, continuing the transformation of Stratford into one of London's most vital and vibrant communities.'

Gordon Aitchison, Director of Investment and Development at Legal & General Property, added:

'A significant new growth area for London, it is anticipated that Stratford will benefit from the creation of more than 40,000 new jobs and 11,000 new homes in the coming years. Stratford is already one of the busiest transport hubs in the capital and the property forms the first exciting phase of Lendlease and LCR's International Quarter development which will eventually provide 4m square feet of office accommodation.'

JLL represented Lendlease and LCR, and Cushman & Wakefieldrepresented Legal & General.

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), 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. Earlier this year London's Mayor Boris Johnson announced that Stratford will be 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 City 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/

Lend Lease Group issued this content on 2016-01-07 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-07 15:21:04 UTC

Original Document: http://phx.corporate-ir.net/phoenix.zhtml?c=186950&p=irol-mediaCentreArticle&ID=2127317