Lendlease and CPPIB plough £80m into Elephant Park BTR
Lendlease and Canada Pension Plan Investment Board have agreed to invest £80m in the next phase of build-to-rent housing at the Elephant & Castle scheme, SE1.
The partners will split the investment equally for the 18-storey, 118-flat tower.
The commitment builds on their £1.5bn BTR push announced in 2018, which included 445 BTR flats at Elephant Park.
Lendlease and Canada Pension Plan Investment Board have agreed to invest £80m in the next phase of build-to-rent housing at the Elephant & Castle scheme, SE1.
The partners will split the investment equally for the 18-storey, 118-flat tower.
The commitment builds on their £1.5bn BTR push announced in 2018, which included 445 BTR flats at Elephant Park.
The first phase of these homes are nearing completion and Lendlease will begin work on the next 118 in the first half of this year.
Tom Mackellar, chief financial officer at Lendlease Europe, said: “This deal demonstrates the strength of our partnership with CPP Investments. The sector is rapidly expanding in the UK and we look forward to helping meet the demand for that type of property.”
Andrea Orlandi, managing director and head of real estate Europe at CPP Investments, said: “The fundamentals continue to support the build-to-rent sector in the UK with an increasing number of households shifting to private rentals, particularly in major urban centres.”
For the half year ended 31 December, Lendlease reported a development pipeline of $112 bn (£58bn), up 51% against the same time last year.
It added two major projects: the £8bn Thamesmead Waterfront scheme with Peabody and its partnership with Google in the San Francisco bay Area.
Lendlease has a pipeline of 57,000 units across 12 gateway cities, this includes 1,752 flats for rent and 1,448 for sale currently under construction.
Group chief financial officer Tarun Gupta said: “Our key focus remains on driving security-holder value through delivery of our growing pipeline of development projects.
“We are shifting invested capital to our international regions and expect this to be increasingly reflected in the contribution from these regions.”
Funds under management grew by 8% to $37bn (£19bn), with a return of 10.7%, and assets under management at $30 bn (£15bn). Lendlease said its core business delivered profit after tax of $308m, generating return on equity of 9.6%.
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