The Canada Pension Plan Investment Board is building on its partnership with Lendlease Corp. with a further £85 million 50/50 co-investment in the U.K. residential real estate sector.
The investment will go toward the building of 123 new build-to-rent homes in south London’s Elephant Park neighbourhood. It marks the second investment the organizations made together this year, having put £80 million towards the construction of an 18-storey building in February.
“The build-to-rent sector in the U.K. continues to be supported by long-term trends, particularly in London and other major U.K. cities,” said Andrea Orlandi, managing director and head of real estate for Europe at the CPPIB, in a press release. “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 latest financial commitment will help to progress this landmark regeneration project. It also extends our positive, broader relationship with Lendlease, which seeks to identify further investment and regeneration development opportunities in the U.K.”