Lendlease has completed the divestment of its UK Build to Rent portfolio to Greystar, realizing approximately ยฃ138 million in proceeds and delivering approximately $260 million in cash to the group during FY26, subject to completion adjustments and foreign exchange movements. The transaction involved 904 residences across four completed buildings at Elephant Park in London, developed in partnership with Canada Pension Plan Investment Board (CPP Investments) between 2021 and 2024. Settlement is expected before 30 June 2026, ensuring the cash benefit flows through the group’s full-year results.
The timing reflects disciplined portfolio management principles. Elephant Park’s urban renewal is now largely complete and its residential portfolio has reached full stabilization, creating an attractive acquisition opportunity for Greystar. The transaction aligns with Lendlease’s December 2025 book value assessment, indicating the group successfully met its expected value creation targets for the development. The portfolio achieved a leading 5-star GRESB rating and secured multiple industry awards for sustainability and design, reflecting strong environmental credentials that strengthen Lendlease’s market positioning in an increasingly sustainability-focused development market.
For investors, this transaction demonstrates Lendlease’s ability to execute capital recycling strategies and identify optimal exit windows for maturing assets. Rather than holding stabilized income-producing portfolios indefinitely, the group strategically identified and executed an exit from Elephant Park after achieving development milestones and reaching full portfolio stabilization. This lifecycle management approach allows the group to redeploy capital into higher-returning opportunities while maintaining disciplined returns standards and avoiding extended exposure to mature, lower-growth assets. The $260 million in cash proceeds provides material financial flexibility to support growth initiatives, fund shareholder distributions, or strengthen the balance sheet during uncertain economic conditions.
The divestment also validates Lendlease’s competitive positioning in UK placemaking and large-scale urban renewal. Elephant Park demonstrates the group’s distinctive capabilities in complex mixed-use development, delivering both tangible community benefits and measurable environmental performance that attract long-term institutional capital partnerships. CPP Investments’ role as development partner underscores the quality of the asset and the credibility of Lendlease’s approach to value creation. As UK development markets increasingly demand sustainability credentials and demonstrated social impact, this track record strengthens the group’s standing for securing future development opportunities and partnerships with quality capital providers.
From an operational standpoint, successful completion of a complex cross-border transaction involving multiple regulatory jurisdictions and sophisticated international stakeholders demonstrates genuine execution capability. The group’s ability to navigate approvals, manage partnership arrangements with major pension funds, and achieve book value targets reinforces confidence in management’s strategic direction and portfolio management discipline. This execution also signals to the market that Lendlease can deliver on its stated strategy of recycling capital from mature assets.
Investors should monitor how Lendlease deploys the recycled capital and whether additional portfolio rotations materialize in coming periods. The completion satisfies the group’s original recycling program announcement, with settlement before 30 June determining full-year cash impact. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Lendlease Group Limited (ASX: LLC)
Lendlease Group is an integrated real estate and investment company that develops, manages and invests in mixed-use residential, commercial, retail, industrial and infrastructure properties. The company operates through investment, development and construction segments across Australia, Asia, Europe and the Americas. Founded in 1957, it is headquartered in Barangaroo, Australia.
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