Lendlease share price charges higher after landing $20 billion Google deal

The Lendlease Group (ASX:LLC) share price has charged higher on Thursday after announcing a major development agreement with tech giant Google…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 index may have dropped lower on Thursday, but the same cannot be said for the Lendlease Group (ASX: LLC) share price.

The international property and infrastructure company's shares are the best performers on the benchmark index today with a gain of 4.5% to $14.75.

Why is the Lendlease share price charging higher?

Investors have been scrambling to pick up the company's shares today after it revealed that it has entered into an agreement with global tech behemoth Google.

According to the release, the company has signed an agreement with Google in the United States that will see the two parties work together for the next 10 to 15 years to develop the tech company's landholdings in San Jose, Sunnyvale and Mountain View into vibrant mixed-use communities.

Lendlease estimates that it will develop up to 15 million square feet of residential, retail, hospitality, and other associated community uses in the new neighbourhoods. After which, Google will focus on developing its office space within these mixed communities.

The release advises that the residential, retail, hospitality and other associated civic components have an estimated end development value of approximately US$15 billion (approximately A$20 billion). Subject to planning approval, development work could commence as early as 2021.

Lendlease Americas CEO, Denis Hickey, said: "This joint agreement between Google and Lendlease will help address the need for new housing in the San Francisco Bay Area. We're eager to contribute our world-class approach to creating unique urban communities, and we are focused on delivering outstanding places that redefine how people choose to live, work, connect and contribute to creating an active community."

This sentiment was echoed by David Radcliffe, Google's Vice President of Real Estate and Workplace Services.

Mr Radcliffe said: "Lendlease has a wealth of knowledge and expertise in residential, retail, and mixed-use developments. Today's agreement expands on an existing and successful partnership that will help us deliver on two important objectives: our commitment to accelerate the production of residential units in the Bay Area, and our plan to build mixed-use developments. Lendlease will play a key role in helping deliver at least 15,000 new homes on our land."

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (C shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX All Ords shares up 50%+ in March

These ASX shares have been on fire this month. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher

These shares are having a good session on hump day. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX shares this Tuesday.

Read more »