Google, Lendlease end deals for San Francisco Bay projects

ALPHABET’S Google and property developer Lendlease Group have ended an agreement to build four projects in the San Francisco Bay Area as the technology firm reviews its real estate footprint.

Lendlease said it will be compensated for its work during the planning process for the projects, which are located in San Jose, Sunnyvale and Mountain View, according to a statement on Thursday (Nov 2).

“The decision to end these agreements followed a comprehensive review by Google of its real estate investments, and a determination by both organisations that the existing agreements are no longer mutually beneficial given current market conditions,” Sydney-based Lendlease said.

The projects would have totalled more than 15 million square feet of office, residential, retail, hospitality and community development space. The projects were also slated to bring more housing to California’s tight residential market.

Google still plans to work with developers and capital partners to move the projects forward, according to a spokesperson.

“As we’ve shared before, we’ve been optimising our real estate investments in the Bay Area, and part of that work is looking at a variety of options to move our development projects forward and deliver on our housing commitment,” said Alexa Arena, senior director of development at Google.

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San Jose Mayor Matt Mahan said he remains confident that Google will move forward with its planned 32.4-hectare mega development in his city.

“This news doesn’t change Google’s commitment to San Jose or their timeline,” he said. “It simply gives them the flexibility needed to get the best possible developers on the project to build 4,000 new homes in our thriving downtown.” BLOOMBERG