Alphabet, the parent company of Google, has recently announced the cancellation of an agreement with Australian developer Lendlease. The agreement was initially aimed at developing residential, office, and retail spaces worth $15 billion in Silicon Valley, California. The plan included developments in four designated areas: San Jose, Sunnyvale, and Mountain View.
According to Lendlease's announcement, the decision to terminate the San Francisco Bay project was made through mutual agreement between Google and Lendlease. "The termination of these agreements is a decision that both parties have reached based on a comprehensive review of Google's real estate investments. Both parties believe that the existing agreements are no longer mutually beneficial given the current market conditions," stated Lendlease in a press release.
A $1 Billion Investment
In June 2019, Google pledged a $1 billion investment to help develop increasingly unaffordable housing in the region. At the time, Google stated it would rezone at least $750 million in land for at least 15,000 new housing units priced for various income levels and invest $250 million in a developer incentive fund to build 5,000 affordable homes.
Google CEO Sundar Pichai wrote in a blog post in June 2019, "Our goal is to help communities succeed over the long term and ensure that everyone can access opportunity, whether or not they work in tech."
A month later, Google partnered with Lendlease to redevelop its land for a 10- to 15-year, $15 billion project.
Earlier this year, Google stated that Mountain View and San Jose had approved 12,900 housing units, with an additional 3,800-plus affordable housing units and other affordable units in progress.
"We've made steady progress, but it's not without its challenges," wrote Scott Foster, Google's Vice President of Real Estate and Workplace Services, in a blog post. "While we expect there to be more periods of slowing down and speeding up, we remain committed to working alongside local governments and organizations to address the growing community housing needs."
According to Lendlease's announcement, the decision to terminate the San Francisco Bay project was made through mutual agreement between Google and Lendlease. "The termination of these agreements is a decision that both parties have reached based on a comprehensive review of Google's real estate investments. Both parties believe that the existing agreements are no longer mutually beneficial given the current market conditions," stated Lendlease in a press release.
A $1 Billion Investment
In June 2019, Google pledged a $1 billion investment to help develop increasingly unaffordable housing in the region. At the time, Google stated it would rezone at least $750 million in land for at least 15,000 new housing units priced for various income levels and invest $250 million in a developer incentive fund to build 5,000 affordable homes.
Google CEO Sundar Pichai wrote in a blog post in June 2019, "Our goal is to help communities succeed over the long term and ensure that everyone can access opportunity, whether or not they work in tech."
A month later, Google partnered with Lendlease to redevelop its land for a 10- to 15-year, $15 billion project.
Earlier this year, Google stated that Mountain View and San Jose had approved 12,900 housing units, with an additional 3,800-plus affordable housing units and other affordable units in progress.
"We've made steady progress, but it's not without its challenges," wrote Scott Foster, Google's Vice President of Real Estate and Workplace Services, in a blog post. "While we expect there to be more periods of slowing down and speeding up, we remain committed to working alongside local governments and organizations to address the growing community housing needs."
