Meyer Bergman has bought a development site in central London for a fund it manages.

The private equity firm said it will invest £300m (€403.3m) in the redevelopment of a two-acre site next to Borough market, on the south bank of the River Thames. Completion is due for 2018.

The investment, for Meyer Bergman European Retail Partners II (MBERP II), is the latest in a series of high profile commitments to the area. 

The Carlyle Group last year said it was looking for a joint venture partner on its mixed-use, 1.4m sq ft Bankside Quarter project south of the Thames. The investment manager appointed Knight Frank to find an investor with which to partner after “unsolicited enquiries” from Middle Eastern, Asia-Pacific and North American investors.

An ongoing tower redevelopment by CIT Developers has attracted investment from a joint venture between Hermes and Canada Pension Plan Investment Board (CPPIB). The pair last year paid around £140m for the office and retail elements of the mixed-use development, due for completion between October this year and mid-2016.

George Walsh-Waring, Meyer Bergman principal, said the south bank area is undergoing ”rapid change”.

“The retail offering is woefully inadequate given the needs of residents and the huge flow of tourists, commuters and office workers passing through every day,” he said. ”It is a signature investment for the fund.”

MBERP II and central London developer Sherwood Street are buying the leasehold to the site. The freehold remains with Network Rail.

Tom Sherwood, founder of Sherwood Street, said: “You aren’t going to get a better location in central London that is lacking a quality retail offering for shoppers than this.”

MBERP II is deploying capital since a final close mid last year at the fund’s cap of €750m.

The fund is focused on assets in the UK, Germany, France, the Nordic region, and Poland. Typical transaction values range between €30m and €300m.