British Land and pension giant AustralianSuper have formed a joint venture to take forward the REIT’s 53-acre Canada Water scheme.
The two companies have struck a deal in which AustralianSuper will buy half of British Land’s share in the Canada Water masterplan for £290m and form a 50:50 joint venture.
The deal values British Land’s interest before the sale at £580m. The REIT will remain the development and asset manager for the scheme and so will continue to earn fees from the jv.
Phase one of the masterplan is expected to complete in the third quarter of 2024, with the two parties committing £201m of initial funding to that part of the scheme, which comprises three buildings covering 582,000 sq ft, including 265 new homes. Future development will be funded through shareholder equity and third-party debt.
British Land chief executive Simon Carter said: “The investment by AustralianSuper, which has extensive experience investing in major regeneration schemes, is testament to the strength of British Land’s reputation and best-in-class development and operational platform. This new partnership enables us to move faster, delivering new homes and workspace, creating new opportunities for local people and delivering value for our shareholders.”
Paul Clark, senior investment director for property in the UK at AustralianSuper, said: “We are actively pursuing new large-scale investment opportunities in the UK and Europe, as well as building out our local team to support this objective. The opportunity to come together with a partner of the calibre of British Land is a critical step to our ongoing expansion in the region and closely aligns to our focus on high-quality assets and responsible investment.”
JLL advised British Land on the joint venture formation.
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