Canada Pension Plan Investment Board (CPP Investments) and real estate group Lendlease are selling a residential portfolio at Elephant Park in London to Greystar for around €572m in net proceeds.
Greystar’s flagship Greystar Equity Partners Europe II (GEPE II) fund is acquiring the 904-home build-to-rent (BTR) portfolio in Elephant & Castle, generating net proceeds for CPP Investments and Lendlease of approximately C$670m (€414m) and A$260m (€157m), respectively, upon completion.
Formed in 2015, the CPP Investments and Lendlease BTR venture has delivered four purpose-built rental buildings within London’s £2.5bn Elephant Park regeneration scheme. The buildings, Park Central West, Park Central East, City Lights Point and Parkside, reached completion between 2021 and 2024.
Tom Jackson, managing director and head of real estate for Europe at CPP Investments, said: “Elephant Park has been an important investment for CPP Investments in the UK build-to-rent sector and reflects our ability to partner with leading developers to deliver high-quality, ambitious rental housing in major global cities.
“With the final building in the portfolio delivered in 2024 and now established, the portfolio sale represents an opportunity to crystalise value for the CPP fund and recycle capital into other investment opportunities.“
Penny Ransom, CEO, investment management, Lendlease, said: “We are proud to have partnered with CPP Investments on the substantial urban renewal of Elephant Park and its enduring contribution to the community.
“The precinct demonstrates Lendlease’s strong placemaking capabilities in the UK and focus on sustainable living, evidenced by Elephant Park’s leading five-star GRESB rrating and award-winning recognition.”
Daniel Breeden, senior managing director for investment in Europe at Greystar, said the combination of Elephant Park’s quality, connectivity and access to major employment centres aligns strongly with Greystar’s investment strategy and with the type of opportunities we are seeking to execute through GEPE II.
Breeden added: “What excites us about this opportunity is the ability to build on the strong foundations already established at Elephant Park. In rental housing, long-term performance is driven by execution at the asset level, from resident experience and customer service to leasing and operations.”
To read the latest IPE Real Assets magazine click here.
