Boss of King Charles property portfolio in talks with old firm for slice of HS2 Euston
King Charles’ property company is in talks to buy up part of HS2’s Euston site from its floundering owner, according to reports.
The Crown Estate, led by Dan Labbad, is in talks with the Australian developer Lendlease for a 50 per cent stake in six major UK projects, an announcement on the Australian Stock Exchange confirmed earlier this week.
Labbad and Lendlease already know each other well. He previously served in a dual role as head of Lendlease’s Europe and international operations.
The deal is expected to be valued at £22bn once development is complete.
Inclusion of the Euston station site in the deal, which was reported by the Telegraph, would come as a boost for the Department for Transport (DfT).
Ministers have been in a race to find private investment to secure its future as costs for HS2’s planned terminus soar to more than £7.5bn.
Any involvement of the Crown Estate could put further scrutiny on Lendlease, which has come under the microscope in the past for its close ties to senior figures at HS2.
Former HS2 chair Sir David Higgins and a key member of the project’s procurement team both previously held top-level positions at the firm.
Property tycoon Michael Gross, the former owner of the Euston site who led a failed bid for its redevelopment, said of Labbad’s former role: “Of course it’s a conflict of interest he was involved with Lendlease before.”
Lendlease flew into the spotlight earlier this year after the firm sold part of its loss-making UK business to the US private equity firm, Atlas Holdings.
The deal placed the future of the company’s UK development contracts into uncertainty at a crucial point in the long-running saga over HS2’s spiralling costs.
It is currently in the process of winding down its entire international operation amid a re-focus on its home country Australia.
A spokesperson for Lendlease said: “As a publicly listed company, we do not comment on speculation.”
A spokesperson for the Crown Estate declined to comment on market rumours.