Land Securities and the Canadian Pension Plan Investment Board have formed a joint venture to develop London Victoria office space. The partnership will work on the development of Victoria Circle in SW1.
According to reports, the development in SW1 was sold to the joint venture for £163 million earlier this week. The partnership will now co-fund the development of the PLP Architecture-designed site which will include retail, residential and Victoria office space in the heart of the capital.
The Victoria Circle development is the latest stage of Land Securities’ redevelopment of Victoria, which has previously included the construction of 59 high-spec apartments at Wellington House. Plans for the Victoria Circle development show five new buildings occupying the island opposite Victoria Station.
Totalling 91,000 sq ft, the Victoria Circle development will deliver 170 private apartments, 694,000 sq ft of Victoria office space and a host of restaurants and new retail units.
Construction on the development is on hold until September 2012 when leases on the existing properties on the site are due to expire. The first phase of construction is due to be completed in 2016, with the final two phases due for completion in 2018.
Commenting on the new joint venture, CPPIB’s Graeme Eadie said: “We are excited to be an investor in this transformative development project in a prime area of London’s West End. The Victoria Circle project supports CPPIB’s real estate strategy to own and develop properties in key markets for the long term. We look forward to working with Land Securities, a best-in-class partner with deep knowledge of the U.K. real estate market.”
Although the original owners of the development, it’s thought Land Sec were keen to seek a partner to limit their risk of exposure to large prospects.