Unibail-Rodamco-Westfield has partnered with Canadian institutions Public Sector Pension Investment Board (PSP Investments) and QuadReal Property Group to develop a €750m London private rented sector (PRS) scheme.
The C$158.9bn (€105bn) pension investment manager PSP Investments and the C$27.4bn property manager QuadReal will each take a 37.5% share in the Cherry Park Partnership, while Unibail-Rodamco-Westfield will retain a 25% share and be appointed as the development and asset manager.
The Cherry Park Partnership will deliver the development and management of around 1,200 new PRS homes, adjacent to Westfield Stratford City in London.
Work is expected to begin in the second quarter of the year, with a phased completion and a delivery expected after 2023.
Olivier Bossard, group chief development officer, Unibail-Rodamco-Westfield, said: “This new residential quarter in the heart of Stratford City is an example of the group’s strategy to significantly increase the densification of exceptional and highly connected retail destinations by adding offices, residential, hotels and other uses, where relevant.”
Unibail-Rodamco-Westfield currently manages a real estate portfolio worth around €65.2bn, the majority (87%) of which is in retail.
“With the Cherry Park Partnership, we are leveraging our unique know-how and joining with strategic capital partners to reinvent city districts,” Bossard said.
Stéphane Jalbert, managing director Europe and Asia-Pacific real estate, PSP Investments, said: “London’s residential sector is chronically undersupplied and Cherry Park supports PSP’s broader long-term sectorial strategy to develop professionally managed residential assets alongside best-in-class investment partners.
“Once completed, this will be one of central London’s largest residential rental schemes and will offer future residents an incredible level of connectivity in an exciting and unique mixed-use location.”
Jay Kwan, head of Europe, international real estate, QuadReal, said: “This partnership fits squarely into our investment strategy to densify successful retail destinations alongside world-class development and operating partners.
“We are excited to launch this new relationship with Unibail-Rodamco-Westfield whilst extending our long-standing and successful relationship with PSP.”