Lendlease and Canada Pension Plan Investment Board (CPP Investments) have strengthened their UK build-to-rent BTR partnership with an additional £85m (€94m) investment.

The companies have each agreed to invest 50% of the capital to help fund 123 new BTR homes at Elephant Park in south London.

In February, the companies announced an £80m investment to begin construction of an 18-storey building with 118 BTR homes at Elephant Park.

The partnership was first announced in 2018 when they agreed an initial target of investing £1.5bn in the sector.

Today’s announcement means that the partnership is now planning to provide over 900 BTR homes at Elephant Park, the companies said in a joint statement.

Construction is well underway on the first two buildings and later this year the partnership is expected to confirm timings for their completion and opening to residents. Lendlease will develop, construct and manage the build-to-rent homes on behalf of the partnership.

Victoria Quinlan, MD for investment management Europe at Lendlease, said: “We’re thrilled to have achieved another major milestone in our partnership with CPP Investments as we build momentum in our build-to-rent platform.

“Their investment demonstrates a vote of confidence in the build-to-rent sector in London and in Elephant Park.”

Andrea Orlandi, MD, head of real estate Europe, CPP Investments, said: “The build-to-rent sector in the UK continues to be supported by long term trends, particularly in London and other major UK cities.

“Private rentals are an increasingly attractive and flexible option for households. The Elephant Park project continues to move ahead towards completion for the first phase, and our, and our latest financial commitment will help to progress this landmark regeneration project.”

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