British Land Co PLC on Tuesday said it has formed a new joint venture with Melbourne-based pension fund AustralianSuper, by selling 50% of its share in the Canada Water Masterplan.

The London-based property company sold its stake for £290 million and formed a 50-50 joint venture with AustralianSuper to ‘accelerate the delivery’ of the regeneration project in south east London.

British Land said the transaction values its interest prior to the sale at £580 million.

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

The 53-acre site is between London Bridge and Canary Wharf. The developers have planning permission for 2,000 to 4,000 new homes and a mix of commercial, retail and community space. Phase 1 of the project is expected to be completed in the third quarter of 2024.

The companies have committed £201 million in initial funding for the phase one development.

Chief Executive Simon Carter 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.’

Shares in British Land were up 1.2% at 468.60 pence on Tuesday morning in London.

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