LandSecs to JV with Canada Pension Plan Investment Board on £1bn Victoria Circle
Land Securities has entered talks with the Canada Pension Plan Investment Board (CPPIB) to form a 50:50 joint venture for the regeneration of London’s Victoria.
Market sources said CPPIB had entered exclusive talks to pay around £150m for the stake in the £1bn Victoria Circle scheme. It is understood to have beaten strong competition from in particular other North American funding partners.
Land Securities appointed CBRE at the end of last year to find a joint venture partner for the 910,000 sq ft mixed-use regeneration scheme.
The REIT has been increasingly turning to joint venture partners on its major projects to spread its exposure to leasing campaigns in key markets. Most notably it has teamed up with Canary Wharf to bring forward its 20 Fenchurch Street tower site in the CIty.
Incoming chief executive Rob Noel, currently London Portfolio managing director, told CoStar News last week that the process at Victoria was on-going: “We have finalised the planning consent for the demolition of the one listed building that sits in the middle of the site, so we are now good to go.
“We have always said we want a joint venture partner, which we want in place before we kick the scheme off … the earliest we can start demolition is the end of September this year.”
There will be a phased completion of the buildings between 2016 and 2018.
LandSecs secured compulsory purchase powers in October to unlocked the scheme which is bounded by Victoria Street, Bressenden Place and Buckingham Palace Road.