Lendlease, one of the largest construction companies in Australia has joined hands with Google, as it entered into an agreement, which would include its involvement in the development of Google-owned tracts of land across California, into office and housing spaces.
The announcement was made in a statement to the stock exchange of Australia, where Sydney-based Lendlease stated that the company would partner with the Silicon Valley giant to develop Google’s properties in the United States near the headquarters in San Francisco, which would include building activity for approximately 15,000 new homes.
Share values for Lendlease jumped up by more than 5.3 per cent following the announcement, the highest value since September 2018.
Project Follows Google Aim to Reduce Housing Shortage
The announcement from Lendlease comes on the heels of Google’s announcement to contribute $1 billion in the following decade to aid in reducing the shortage of housing infrastructure in the region. This project would involve redeveloping company-owned land, despite resistance from activists that technology companies have pushed out low-wage employees, by making the region unaffordable for them.
In addition, Lendlease and Google have previously tried to work together in a now abandoned plan to move Google’s Australia headquarters into a disused power plant in Sydney. Similarly, Lendlease was chosen by Google for the construction of its headquarters in Europe, near London’s King’s Cross Station, which will be completed in 2021.
The construction projects that are now to be carried out in San Francisco, will not only include the 15,000 houses, but will also involve the construction of retail, office, and hospitality establishments. In addition, a low-cost component of housing could materialize, as the plan moves forwards, but this has not been specified as yet.
Lendlease is looking to expand its presence in the United States, despite a slowdown in the country’s housing market. According to the statement by Lendlease, the deal between the two companies would account for $15 billion, and will be operations for a period between 10 to 15 years. Operations to execute the agreement are anticipated to begin in 2021.