Unibail-Rodamco-Westfield has formed a new joint venture with Canadian public pension fund the “Public Sector Pension Investment Board” (PSP Investments) and global real estate company QuadReal Property Group (QuadReal).
The new joint venture, named as the Cherry Park Partnership, will build and manage the €750m (£670m) Privete Ranted Sector (PRS) scheme, adjacent to Westfield Stratford City in London. It will be one of London’s largest single-site PRS schemes.
Construction work will start in Q2 2019 and is expected to complete in 2023.
The Cherry Park Development will consist of approximately 1,200 new homes,a residents’ gym, swimming pool, workspace and high-quality public areas.
PSP Investments and QuadReal will each take a 37.5% share in the Cherry Park Partnership, while Unibail-Rodamco-Westfield will retain a 25% share and be appointed as the development and asset manager.
Olivier Bossard, Group Chief Development Officer, Unibail-Rodamco-Westfield, said: “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. With the Cherry Park Partnership, we are leveraging our unique know-how and joining with strategic capital partners to reinvent city districts.”
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. Once completed, this will be one of central London’s largest residential rental schemes and will offer future residents an incredible level of connectivity in an exciting and unique mixed-use location.”
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.”