U.K.,/ Toronto, CANADA (January 16, 2018)– Leading property and
infrastructure group, Lendlease, and Canada Pension Plan Investment Board
(CPPIB) have today announced the launch of a major U.K. Build-to-Rent investment
partnership, with an initial target to invest £1.5 billion in the sector.
The partnership will begin with an investment of c.£450 million in the
next phase of new homes, which will be for private rent, at Lendlease’s £2.3
billion Elephant Park development in Elephant & Castle. CPPIB will invest c.£350
million for 80 per cent and Lendlease will invest the balance.
Today’s announcement is in addition to the c.£800 million that Lendlease
has already committed to housing and infrastructure in the development and will
accelerate the delivery of private rental and affordable homes. Construction
has already commenced, and the first homes in this phase are expected to be completed
in 2020. Further to this initial investment, the partnership will also pursue
opportunities within Lendlease’s wider residential urban regeneration
activities in London and across the U.K. under a 50:50 joint venture. It aims
to help address the U.K.’s housing shortage, over time, providing thousands of
much-needed homes in London and across the U.K. via the development, and
long-term ownership, of Build-to-Rent product.
Lendlease will develop, construct and manage the Build-to-Rent homes on
behalf of the partnership, ensuring a high-quality rental product and service, as
a part of its strategy to encourage diverse and vibrant communities with a mix
Dan Labbad, CEO of International Operations at Lendlease, said: “In recent decades, structural shifts in the housing market have meant
that demand has outstripped supply in the private rented sector, leading to a
shortfall of homes in London and across the U.K.
“Today’s announcement is a logical next step for us as a business and delivers
on our strategy to grow our urban regeneration pipeline and accelerate the delivery
of much-needed homes, by working with institutional capital partners to launch
this new asset class for Lendlease’s investment platform. CPPIB is already a
highly valued, long-term global partner of Lendlease and we look forward to extending
our relationship through this partnership.”
Andrea Orlandi, Managing Director, Head of
Real Estate Investments Europe at CPPIB, said: “This investment is a great
opportunity for CPPIB to further diversify our European real estate portfolio,
while at the same time addressing a need in the U.K. Through this partnership,
we are able to access a sector we believe is poised for long-term growth, and
we are pleased to be able to do so with Lendlease, one of our existing top
NOTES TO EDITORS:
- Lendlease is a leading international property and infrastructure group
with operations in Australia, Asia, Europe and the Americas.
- Our vision is to create the best places; places that inspire and enrich
the lives of people around the world.
- Headquartered in Sydney, Australia, and listed on the Australian Securities
Exchange, Lendlease has approximately 12,350 employees internationally.
- Our core capabilities are reflected in our operating segments of
Development, Construction and Investments. The combination of these three
segments provides us with a sustainable competitive advantage and allows us to
provide innovative integrated solutions for our customers.
- Lendlease is behind some of London’s largest and most exciting mixed-use
regeneration projects such as Elephant & Castle and The International
- Lendlease was recognised as the UK’s Most Sustainable Residential
Developer by the NextGeneration Sustainability Benchmark for setting new
standards of sustainability and customer engagement for two consecutive years
in 2016 and 2017, scoring more than double the industry average.
- CPPIB is invested in Lendlease International Towers Sydney Trust which
holds a number of office towers at Barangaroo South in Sydney.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2017, the CPP Fund totalled C$328.2 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn or Twitter.