The generous music mogul will gift Lauren one of his mansions in order for the 36-year-old socialite to bring up their child in Los Angeles.
Lauren is currently based in The Hamptons, near New York where she lives with her husband Andrew and their seven-year-old son Adam.
According to a report in the Daily Mirror, the home is situated on the exclusive Trousdale estate in Beverly Hills and 'will be given to Lauren' after her divorce.
The newspaper suggests that it is understood that Simon will live in another property nearby and see the child 'when he can.'
'Simon has amassed a lot of houses with his fortune and will want to provide for his child,' a US property source told the newspaper.
'But he seems to give away a house every time he splits from a girlfriend, so he is getting through them more quickly than he thought.
'He has instructed his advisers to let Lauren have the house, which means she can be nearby but crucially not too close so he can get on with his work and usual lifestyle.'
It is thought Lauren will live at the property with her mother Carole Saland and her baby.
With neighbours including Ringo Starr and Elton John, Lauren will apparently enjoy a 7,265 square-foot home complete with swimming pool and four bedrooms.
'Simon has lots of housing in Beverly Hills all close to each other and now lots of it contain his exes,' a source said.
'He doesn’t seem to mind that he could bump into them at any time, but the rate he is going he may need to buy some more.'
Source: Daily Mail
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