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Lendlease signs historic development deal

The California project with Google is the biggest in Lendlease's 61-year history

Lendlease has chalked up the biggest urban construction deal in its history.

The Australian property giant has signed a $20 billion deal with Google to develop 15 million square feet of residential, retail, hospitality and community space across three neighbourhoods in the San Francisco Bay Area.

Google will set up office space within the planned mixed communities in Jose, Sunnyvale and Mountain View.

The California project is the biggest in Lendlease's 61-year history and work is expected to begin as early as 2021, pending planning approvals and development work.

"This joint agreement between Google and Lendlease will help address the need for new housing in the San Francisco Bay Area," Lendlease Americas CEO Dennis Hickey said in a statement on Thursday.

"We are focused on delivering outstanding places that redefine how people choose to live, work, connect and contribute to creating an active community."

The mixed-use communities projects will be developed during the next 10 to 15 years.

Lendlease is currently finishing the construction of Google's new UK headquarters in London.