Google and Lendlease have agreed to collaborate over the next 15 years to deliver three new mixed-use neighbourhoods in San Francisco worth a whopping $21 billion.
Lendlease and Google will undertake master planning, entitlement and development of a $1 billion land bank in three major areas in San Jose, Sunnyvale and Mountain View.
Lendlease estimates that it will develop up to 1.4 million sqm of residential, retail, hospitality, and other associated community uses in the new neighbourhoods. Google will develop its office space within these mixed communities.
The residential, retail, hospitality and other associated civic components have an estimated end development value of around $21 billion.
Subject to planning approval, development work could commence as early as 2021.
The new partnership strengthens the relationship between Lendlease and the tech titan. Lendlease is currently constructing Google’s European headquarters in London, slated for completion in 2021.
Lendlease’s CEO for the Americas, Denis Hickey, says the joint agreement will “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,” Hickey says.
Google’s vice president of real estate and workplace services, David Radcliffe, says the partnership will deliver “at least 15,000 new homes on our land”.
In June, Google announced a $1.4 billion commitment to more affordable housing in the San Francisco Bay Area, where home prices have skyrocketed, and many people face lengthy commutes.
One recent review of housing costs and median rent rates found people earning $142,000 could only afford to live in 28 per cent of the Bay Area’s neighbourhoods. Another study found the Bay Area had the third-largest population of people experiencing homelessness in the United States.
Google has also promised to create a $250 million investment fund to incentivise developers to build at least 5,000 affordable housing units.