Public pension giant Canada Pension Plan Investment Board (CPPIB) has formed a 50:50 joint venture with UK REIT Land Securities to develop and own Victoria Circle in the West End of London. When complete, the scheme will provide 84,500 m[sup]2[/sup] of residential, offices and retail space, as well as public amenities with an estimated value in excess of £1 bn (EUR 1.2 bn).
Public pension giant Canada Pension Plan Investment Board (CPPIB) has formed a 50:50 joint venture with UK REIT Land Securities to develop and own Victoria Circle in the West End of London. When complete, the scheme will provide 84,500 m2 of residential, offices and retail space, as well as public amenities with an estimated value in excess of £1 bn (EUR 1.2 bn).
The Victoria Circle development will comprise five new buildings occupying the island site opposite Victoria Station bounded by Bressenden Place, Victoria Street and Buckingham Palace Road. The first and final two phases will be delivered in 2016 and 2018 at the earliest.
Land Securities has sold the existing properties on the 2.2 hectare Victoria Circle site to the partnership for £163 mln. The buildings are let until September 2012 - the earliest date at which demolition can start.
Robert Noel, managing director of Land Securities' London portfolio, said: 'Having signalled our intention to seek a partner on this project, we're delighted to have teamed up with CPPIB. Victoria is changing, and the transaction is a great vote of confidence in our plans for this part of the West End.'
Land Securities has been appointed development manager by the partnership and as part of this role, will be responsible for leasing all the retail and office space as well as selling the private apartments.
CPPIB manages EUR 114 bn in investment assets for the Canada Pension Plan on behalf of 17 million Canadians. This week CPPIB entered into a deal with Sydney-listed mall owner-developer Westfield to take a 45% stake in a $4.8 bn US shopping centre portfolio.
