Lendlease and Starwood Capital will own the development vehicle on a 50% co-investment basis, with Lendlease working as development manager and construction manager for Silvertown Quays.
The transaction remains subject to pre-completion conditions.
The Silvertown Partnership holds development rights in a £3.5bn urban renewal project in London’s East End, between Canary Wharf and London City Airport. It has planning approval for seven million square feet of residential and commercial use, including 3,000 homes and the restoration of the historic Millennium Mills and the listed Silo-D.
Under the terms of the existing planning consent, the Silvertown Partnership will develop more than 900 affordable homes within the 20-hectare site.
A new pedestrian and cycling bridge will link the site to Custom House station which will be served by Crossrail later this year. The project will also incorporate restoration of the dock walls, new public spaces, as well as commercial and retail space for the residents of Newham.
Dan Labbad, chief executive of Lendlease’s international operations, said: “London is universally recognised as one of the world’s most exciting cities. In order to maintain its rich mix of cultures and people, the city must continue to deliver projects like Silvertown Quays. Working in partnership, we plan to create a place that’s innovative and environmentally sustainable, and will provide tangible benefits for the local community for the long-term. These are standards and commitments we apply to all our work and Silvertown Quays is no exception.”
Jeff Dishner, Starwood Capital global head of real estate acquisitions, said: “Working with Lendlease, our vision is to invest significantly into the infrastructure around the site and create a completely new and creative neighbourhood that meets consumer demand, reinvigorates London’s East End and delivers for our investors.”