The Canada Pension Plan Investment Board is strengthening its partnership with property group Lendlease through an agreement to invest in a new building in south London.

The CPPIB is set to invest about £40 million, or 50 per cent of the total investment, with Lendlease supplying the rest.

“The fundamentals continue to support the Build-to-Rent sector in the U.K. with an increasing number of households shifting to private rentals, particularly in major urban centres,” said Andrea Orlandi, managing director and head of real estate for Europe at the CPPIB, in a press release. “By working with Lendlease, one of the largest global real estate developers, we will aim to address the Build-to-Rent shortage and pursue additional investment and regeneration development opportunities in the U.K.”

The partnership is a continuation of the CPPIB’s relationship with Lendlease that began in 2018.

“This deal demonstrates the strength of our partnership with CPP Investments, and our partnership is already set to bring hundreds of high-quality new Build-to-Rent homes to Elephant Park in south London,” said Tom Mackellar, chief financial officer for Lendlease Europe. “The sector is rapidly expanding in the U.K. and we look forward to helping meet the demand for that type of property.”