Lendlease Sells Elephant Park As It Prepares UK Construction Exit By June
Evolve Estates, part of the commercial property and investment business M Core, has acquired 120K SF of retail and leisure space from Lendlease at Elephant Park in London for an undisclosed sum.
Located in the Elephant and Castle area, the Elephant Park development was delivered in a partnership between Lendlease and Southwark Council, and the project has so far provided nearly 3,000 new homes and is centred on a new park.
The retail and leisure space at Elephant Park will combine independent retailers, cafés, fitness, leisure, bars and community functions. In the final quarter of 2024, Lendlease added 12 brands to Elephant Park for more than 40,500 SF of retail and leisure space, including The Gym Group, Simply Fresh and Heavenly Desserts.
“We were attracted to Elephant Park's scale and ambition,” Evolve Partner Sebastian Macdonald-Hall said in a statement. “Lendlease has delivered a hugely successful regeneration project, creating new homes, offices, green spaces, and jobs. We want to build on this by working with local stakeholders to develop a thriving and diverse community.”
CBRE acted for Lendlease, and Hampson Wall acted for Evolve, which made 14 acquisitions in 2024. The company said those deals formed part of its growth plan, which will continue in 2025, and that there was high demand for space at Elephant Park.
In December, Lendlease announced the sale of the final plot at Elephant Park to developer Hub and global alternative investment firm H.I.G. for £42M. They plan to deliver a mixed-use development including shared-living and affordable homes, new public realm, ground-floor retail and a health hub.
In May, Lendlease said it was winding down some areas of its European business.
That includes construction, and Lendlease and Atlas Holdings announced on 1 January that they had entered into a binding agreement for the sale of Lendlease’s UK construction business and its operations, including existing employees and leadership team.
Founded in 2002, Atlas and its affiliates own and operate 26 platform companies that employ more than 50,000 staff across 350 facilities worldwide.
“This transaction builds on our progress to simplify Lendlease as we look to lower our risk profile and increase security holder returns,” Lendlease Group CEO Tony Lombardo said in a statement. “It also represents a positive outcome for our talented people and our valued customers and clients, marking a new chapter under the ownership of Atlas.”
Lendlease’s UK construction business was founded in 1885 as Bovis Construction and was acquired by Lendlease in 1999. Completion of the transaction is subject to conditions including regulatory approvals, with completion targeted before the end of the Australian financial year in June, about six months ahead of the proposed timetable for its European construction market exit, which was first announced last May.
