London office market given “vote of confidence” with announcement of £215m joint venture

The London office market has been given a vote of confidence through the establishment of a new joint venture partnership dedicated to the development of an office-led neighbourhood at International Quarter London (IQL).

Real estate group, Lendlease, and Canada Pension Plan Investment Board (CPP Investments) have initially committed to developing the Turing Building, allocating approximately £215m from the joint venture.

This partnership further builds upon Lendlease and CPP Investments’ existing joint ventures, which include established projects at Elephant Park in London, U.K., Barangaroo in Sydney, Australia and the Milano Innovation District, Italy.

Construction on the Turing Building, which has been designed by architects Arney Fender Katsalidis, is expected to begin in early 2022. Once complete, it will provide 350,000 sq ft of flexible Grade A workspace, retail space and a boutique cinema.

IQL is located at the gateway of the Queen Elizabeth Olympic and is home to institutions such as Transport for London, Cancer Research UK, the British Council and Unicef. It is part of SHIFT, London’s newest innovation district, focusing on finding answers to the real, every-day problems facing citizens and cities.

Bek Seeley, managing director of development, Europe, said: “Following a challenging year, with Covid-19 bringing uncertainty to economies across the globe, this deal is a real vote of confidence in future workplaces and London’s office market more broadly. The Turing Building will bring market-leading, flexible workspace to Stratford, sitting alongside cultural heavyweights East Bank, UCL and Here East.

“Sustainability and innovation are at the core of everything we do, and we will be working closely with CPP Investments, and other partners, to develop spaces at IQL where businesses can collaborate, create and grow, surrounded by 560 acres of parkland and waterways.”

Tom Jackson, managing director, UK Real Estate, CPP Investments added: “IQL is an excellent opportunity to further our existing global relationship with Lendlease. This relationship extends to several joint ventures globally and we are delighted to undertake our second partnership here in the UK, bringing further investment and development activity to London.

“Stratford is one of the city’s fastest growing sub-markets, with fantastic transport links, over 500 acres of green space, Olympic quality sports facilities and growing culture, leisure and higher education facilities.

“Our partnership with Lendlease forms part of our strategy to align with best-in-class delivery partners and our wider commitment to deliver steady, long-term returns for CPP contributors and beneficiaries.”