Lendlease wins $15bn Google deal for San Francisco

Australian property and infrastructure firm Lendlease has announced a joint project with Google to masterplan and develop three areas of San Francisco’s Bay Area.

Lendlease says the two will create up to 15 million sq ft of residential, retail, hospitality and community uses in the redeveloped neighbourhoods of San Jose, Sunnyvale and Mountain View over the next 10-to-15 years.

Work on the $15bn projects is still subject to planning approval but construction could start as early as 2021.

Google’s expansion in the area came under criticism recently from a report that found that families in San Jose could be hit by rent hikes of $816 each year as a result of its new campus, and that more than 5,000 affordable and 12,500 market-rate homes would be needed to stabilise housing costs.

David Radcliffe, Google’s real estate vice president, said: "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 homes on our land."

Denis Hickey, Lendlease Americas’ chief executive, said: "This joint agreement between Google and Lendlease will help address the need for 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."

Image: Entrance to the Googleplex, Silicon Valley (Andrei Gabriel Stanescu/Dreamstime)

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