Australian construction group Lendlease has struck a $21 billion deal with Google to jointly redevelop the hyperscale operator’s landholdings in the San Francisco Bay Area.
Under the deal, Google and Lendlease will work together “for the next 10 to 15 years” on sites in San Jose, Sunnyvale and Mountain View.
“Lendlease estimates that it will develop up to 15 million square feet of residential, retail, hospitality, and other associated community uses in the new neighborhoods,” it said in a statement.
“Google will focus on developing its office space within these mixed communities.”
The residential, retail, hospitality and other associated civic components have an estimated end development value of approximately US$15 billion ($21 billion), the two firms said.
Subject to planning approval, development work could commence as early as 2021.
“This joint agreement between Google and Lendlease will help address the need for new housing in the San Francisco Bay Area,” Lendlease’s CEO Americas Denis Hickey said.
Google said that Lendlease “will play a key role in helping deliver at least 15,000 new homes on our land.”