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.”
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