British Land partners with AustralianSuper to bring forward Canada Water masterplan

British Land has sold 50% of its stake in the Canada Water Masterplan to AustralianSuper for £290m.

Following completion of the sale, British Land and AustralianSuper, which is one of Australia’s largest pension funds, will form a 50:50 joint venture to accelerate the delivery of the 53-acre development, which is one of the largest London regeneration projects in history – incorporating homes, workspace, retail, leisure and an enhanced public realm. 

British Land said the transaction “accelerates the delivery of Canada Water, increases returns and releases capital for further development”. British Land will also earn fees from the JV as the development and asset manager for the masterplan and will be entitled to an enhanced return if the JV meets certain returns targets.

The JV has already committed to developing phase 1 of the masterplan, which is expected to complete in the third quarter of 2024. British Land and AustralianSuper have committed to £201m of initial funding to the JV for the purposes of developing phase 1  and to progressing subsequent phases of the development. It is anticipated that future development will be funded through a combination of shareholder equity and third party debt. 

Simon Carter, chief executive of British Land, said: “We are delighted to be working with AustralianSuper on this exciting development to deliver a new urban centre for London at Canada Water. The investment by AustralianSuper, who have 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.

“This transaction is a great example of our proactive approach to recycling our capital and leveraging our expertise by working with like-minded partners.” 

BLND : British Land partners with AustraliaSuper to bring forward Canada Water masterplan

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