SINGAPORE (EDGEPROP) - UK property company British Land has sold a 50% stake in the Canada Water Masterplan, its 53-acre regeneration project in Canada Water, London, to Australian superannuation fund AustralianSuper for GBP290 million ($519 million).

Following completion of the sale, British Land and AustralianSuper have formed a 50:50 joint venture for the development of the project. The transaction values British Land’s interest prior to the sale at GBP580 million.

British Land will also earn fees from the joint venture as the development and asset manager for the Masterplan and will be entitled to an enhanced return if the joint venture meets certain returns targets.

Simon Carter, CEO of British Land, says the new partnership with AustralianSuper will accelerate the delivery of the Canada Water Masterplan. “We are delighted to be working with AustralianSuper on this exciting development to deliver a new urban centre for London at Canada Water,” he remarks in a March 8 press statement.

Located in the south-east of London, Canada Water is one of the largest mixed use regeneration projects in the city. It is expected to deliver between 2,000 and 4,000 new homes, alongside a mix of commercial, retail and community space.

Located in Zone 2 on the Jubilee Line and London Overground, Canada Water is easily accessible from London Bridge, the West End, Canary Wharf and Shoreditch.

Phase 1 of the Masterplan is expected to complete in 3Q2024. British Land and AustralianSuper have committed GBP201 million of initial funding to the joint venture for the purposes of developing Phase 1 and to progressing subsequent phases of the development.

Paul Clark, senior investment director property UK at AustralianSuper says: “Our investment in Canada Water will contribute to the retirement savings of our 2.6 million members, whilst also being part of a once-in-a-lifetime regeneration project that will provide benefits to residents, businesses and the community for generations to come.”