Andrey Omelyanchuk

The Public Sector Pension Investment Board is beefing up its investment in London student housing with a partnership on the development of a $1.1 billion private student residence.

The PSP is partnering with European real estate company Unibail-Rodamco-Westfield and Vancouver-based QuadReal Property Group, a subsidiary of the British Columbia Investment Management Corp., on the Cherry Park Partnership.

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“London’s residential sector is chronically undersupplied and Cherry Park supports the PSP’s broader long-term sectorial strategy to develop professionally managed residential assets alongside best-in-class investment partners,” said Stéphane Jalbert, managing director of real estate for Europe and Asia Pacific at the PSP, in a press release. “Once completed, this will be one of central London’s largest residential rental schemes.”

Both the PSP and QuadReal will hold 37.5 per cent stakes, with Unibail-Rodamco-Westfield taking the remaining 25 per cent and the role of developer and asset manager.

With a total of 1,200 new homes, the development will be located in London’s Stratford borough. The announcement comes days after the PSP said it would purchase a student accommodation in London, in partnership with Greystar Real Estate Partners and Allianz Real Estate, for $241 million.

Read: PSP Investments invests in U.S. insurance broker

“This partnership fits squarely into our investment strategy to densify successful retail destinations alongside world-class development and operating partners,” said Jay Kwan, head of Europe and international real estate for QuadReal. “We’re excited to launch this new relationship with Unibail-Rodamco-Westfield while extending our long-standing and successful relationship with the PSP.”

Construction on Cherry Park will begin in the second quarter of 2019 and is expected to be completed by 2023.

Read: PSP takes further stake in London student housing

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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