** Shares of Lendlease LLC.AX rise as much 2.4% to A$5.64

** Real estate firm on Monday announced joint venture with The Crown Estate, the property manager of the British monarch, for investment in six of Lendlease's UK projects

** Morgan Stanley sees this as a favourable outcome as UK projects would have taken years to progress

** Says deal halves co's project costs, saving nearly A$125 mln by sharing expenses with partner

** Brokerage notes that co has contracted ~A$2.5 bln of asset sales since its strategy update, nearing its A$2.8bln target by FY25

** Maintains rating at "Equal-weight" at a price target of A$7.12

** Stock down 9.7% YTD

(Reporting by Sneha Kumar and Kumar Tanishk in Bengaluru)

((Sneha.kumar@thomsonreuters.com;))