Highlights

  • Lendlease has completed the recycling of its UK Build-to-Rent portfolio to Greystar.
  • The transaction covers 904 residences at Elephant Park in London, developed alongside CPP Investments.
  • The sale is in line with the portfolio's December 2025 book value.
  • Lendlease expects approximately AUD 260 million in FY26 cash proceeds from the transaction.
  • The urban renewal of Elephant Park is now largely complete, allowing the partners to recycle capital from the project.

Lendlease Group (ASX:LLC) has completed the previously announced recycling of its UK Build-to-Rent (BTR) assets, marking another milestone in the group's capital recycling strategy. The completed transaction involves the sale of a residential portfolio at Elephant Park in London to Greystar and follows the announcement made by the company earlier this month.

Lendlease shares were trading at AUD 3.09 during the morning session on 26 June 2026, down 2.52% for the day. Over the past 12 months, the stock has declined 42.67%.

About Lendlease Group

Lendlease Group is an integrated real estate business with operations spanning property investment, development, construction and investment management across several international markets. The company manages and owns investments across Australia, Singapore, the United Kingdom, Italy, the United States, Malaysia and Japan through its Investments division, while its Development and Construction businesses are focused on projects in Australia.

Its portfolio includes residential communities, mixed-use precincts, office developments, retail assets, infrastructure and social infrastructure projects. Alongside property development, Lendlease also manages investment assets on behalf of institutional partners and continues to focus on capital recycling across selected mature assets.

Transaction Covers 904 London Residences

The completed transaction relates to a portfolio comprising 904 Build-to-Rent residences located within Elephant Park in London.

The portfolio was developed through a partnership between Lendlease and Canada Pension Plan Investment Board (CPP Investments), with the four residential buildings completed progressively between 2021 and 2024.

Lendlease confirmed that the transaction has now completed following its earlier announcement on 11 June 2026.

The buyer of the portfolio is Greystar, one of the global participants in residential property investment and management.

Elephant Park Urban Renewal Nears Completion

According to Lendlease, the Elephant Park urban renewal project has now reached a stage where it is largely complete, with the residential assets fully stabilised.

The company said this provided an appropriate opportunity for both Lendlease and CPP Investments to recycle capital from the project.

Elephant Park has been one of Lendlease's major urban renewal developments in the United Kingdom, with the completed portfolio forming part of the broader regeneration of the precinct.

The company also highlighted the project's sustainability credentials, noting that Elephant Park has achieved a 5-star Global Real Estate Sustainability Benchmark (GRESB) rating while also receiving multiple industry awards.

Cash Proceeds Expected in FY26

Lendlease said the divestment has been completed in line with the portfolio's December 2025 book value.

According to the announcement, the transaction will settle before 30 June 2026 and is expected to generate approximately AUD 260 million in cash proceeds for Lendlease during FY26, subject to completion adjustments and foreign exchange movements.

The company also disclosed that proceeds of approximately GBP 138 million will be received by Lendlease, net of transaction costs, compared with a HY26 total carrying value of GBP 137 million.

The transaction will be recognised within Lendlease's Investments segment.

Capital Recycling Remains a Strategic Focus

The latest transaction forms part of Lendlease's ongoing capital recycling strategy, where mature and stabilised assets are monetised to release capital for future investment opportunities.

The company noted that the Elephant Park assets had reached a fully stabilised stage following completion of the development, making the timing suitable for the portfolio recycling.

By completing the transaction alongside CPP Investments, Lendlease continues to execute the investment lifecycle strategy outlined across its investment management operations.

Partnership With CPP Investments Continues

The Build-to-Rent portfolio was developed in partnership with CPP Investments, which worked alongside Lendlease throughout the delivery of Elephant Park.

The four residential buildings included in the transaction were completed between 2021 and 2024 as part of the broader regeneration project.

Lendlease acknowledged the partnership in delivering the urban renewal precinct and confirmed that both partners have now recycled capital through the completed sale.

Management Highlights Long-Term Partnership Approach

Chief Executive Officer, Investment Management, Penny Ransom, said the company was proud of its partnership with CPP Investments in delivering the Elephant Park urban renewal project and its contribution to the surrounding community.

She noted that the development demonstrates Lendlease's placemaking capabilities within the UK market together with its focus on sustainable living, supported by the precinct's 5-star GRESB rating and industry recognition.

Ransom also said the company remains focused on supporting investment partners throughout the investment lifecycle by providing liquidity while pursuing returns and future growth opportunities.

Transaction Completes Earlier Announcement

The latest announcement represents the completion of the transaction initially disclosed by Lendlease on 11 June 2026.

With settlement scheduled before the end of June, the company expects the cash proceeds to be recognised during FY26.

The sale also concludes Lendlease's ownership of the 904 Build-to-Rent residences included within the transaction while completing another stage of the company's broader capital management activities.

What This Means for Investors

Lendlease's latest announcement confirms the completion of its previously announced UK Build-to-Rent portfolio sale to Greystar. The transaction includes 904 residences at Elephant Park in London and is expected to generate approximately AUD 260 million in FY26 cash proceeds. According to the company, the divestment was completed in line with the December 2025 book value and reflects the recycling of capital from a largely completed and stabilised development.