Lendlease and Canada Pension Plan Investment Board (CPP Investments) have formed a new 50:50 joint venture partnership dedicated to the development of a new office-led neighbourhood at International Quarter London (IQL).
The companies have worked together before at Elephant Park in London, U.K., Barangaroo in Sydney, Australia and the Milano Innovation District, Italy.
The partnership has initially committed to developing the Turing Building, allocating c. £215 million from the joint venture. The building will offer 350,000 sq ft of flexible Grade A workspace, retail space and a boutique cinema.
The Turing Building is one of four large new office buildings planned for IQL, together they are expected to provide a total development area of 1.6m square feet when fully developed, with an estimated gross development value of approximately £1.5bn.
Construction on the Turing Building is expected to begin in early 2022.
Bek Seeley, Managing Director, Development, Europe, commented: “Following a challenging year, with Covid-19 bringing uncertainty to economies across the globe, this deal is a real vote of confidence in future workplaces and London’s office market more broadly. The Turing Building will bring market-leading, flexible workspace to Stratford, sitting alongside cultural heavyweights East Bank, UCL and Here East.
“Sustainability and innovation are at the core of everything we do, and we will be working closely with CPP Investments, and other partners, to develop spaces at IQL where businesses can collaborate, create and grow, surrounded by 560 acres of parkland and waterways.”
Tom Jackson, Managing Director, Head of U.K. Real Estate, CPP Investments added: “IQL is an excellent opportunity to further our existing global relationship with Lendlease. This relationship extends to several joint ventures globally and we are delighted to undertake our second partnership here in the U.K., bringing further investment and development activity to London. Stratford is one of the city’s fastest growing sub-markets, with fantastic transport links, over 500 acres of green space, Olympic quality sports facilities and growing culture, leisure and higher education facilities. IQL’s supply of Grade A office space with strong sustainability credentials, will help service current and growing tenant demand for this sub-market. Our partnership with Lendlease forms part of our strategy to align with best-in-class delivery partners and our wider commitment to deliver steady, long-term returns for CPP contributors and beneficiaries.”