Global property giant Unibail-Rodamco-Westfield has inked a conditional agreement with a subsidiary of Canadian public pension fund PSP Investments and global real estate company QuadReal Property Group to build a €750 mln private rented sector (PRS) residential scheme next to Westfield Stratford City in east London.
Dubbed the Cherry Park partnership, the JV will deliver the development and management of around 1,200 new homes with amenities, representing one of London's largest single-site PRS schemes. Construction work is due to start in Q2 2019, with a phased completion and delivery expected post 2023.
PSP Investments and QuadReal will each take a 37.5% share in the partership, while Unibail-Rodamco-Westfield will retain a 25% share and be appointed as the development and asset manager.
'This new residential quarter in the heart of Stratford City is an example of the group's strategy to significantly increase the densification of exceptional and highly connected retail destinations by adding offices, residential, hotels and other uses, where relevant,' said Olivier Bossard, group chief development officer, Unibail-Rodamco-Westfield.
Stéphane Jalbert, managing director Europe and Asia Pacific, real estate, PSP Investments, added: 'London's residential sector is chronically undersupplied and Cherry Park supports PSP's broader long-term sectorial strategy to develop professionally managed residential assets alongside best-in-class investment partners.'
Jay Kwan, head of Europe, international real estate, QuadReal, said: 'This partnership fits squarely into our investment strategy to densify successful retail destinations alongside world-class development and operating partners. We are excited to launch this new relationship with Unibail-Rodamco-Westfield whilst extending our long-standing and successful relationship with PSP.'