Greystar acquires BTR portfolio from CPPI and Lendlease

Rental housing provider Greystar has acquired a 904-home build-to-rent (BTR) portfolio at Elephant Park in London's Elephant & Castle.

Elephant Park

The portfolio was purchased from Canada Pension Plan Investment Board (CPP Investments) and international real estate group, Lendlease.

This transaction was financed through Greystar's flagship Greystar Equity Partners Europe II fund (GEPE II). GEPE II recently closed with over €2.7 bn in total commitments, making it the largest pan-European value-add residential fund ever raised, with more than €6.8 bn in investment capacity for acquisitions and development opportunities across key European markets.

Since their initial investment in 2015 through their BTR partnership, CPP Investments and Lendlease have developed four purpose-built rental residential buildings within the £2.5 bn Elephant Park regeneration scheme: Park Central West, Park Central East, City Lights Point, and Parkside.

Over their more than 10-year partnership, CPP Investments and Lendlease have collaborated closely on the delivery, lease-up, and stabilisation of this portfolio, significantly contributing to the regeneration of Elephant & Castle into a dynamic mixed-use residential destination. Its central location, strong public transport connections, and high-quality amenities have made it appealing to young professionals and families. The site is a four-minute walk from Elephant & Castle station, offering direct access to major employment centres in the City of London and the West End from a well-connected Zone 1 location.

CPP Investments and Lendlease are expected to receive net proceeds of approximately C670 mln and A260 million, respectively. The transaction is anticipated to close by the end of June 2026, pending customary closing conditions.

Daniel Breeden, senior managing director – Investment, Europe, Greystar, said: “Elephant Park represents a rare opportunity to acquire a large-scale, operational build-to-rent portfolio in a well-connected Zone 1 location. The combination of asset quality, connectivity and access to major employment centres aligns strongly with our investment strategy and with the type of opportunities we are seeking to execute through GEPE II.

Tom Jackson, managing director, head of Real Estate Europe, CPP Investments, said: “With the final building in the portfolio delivered in 2024 and now established, the portfolio sale represents an opportunity to crystallise value for the CPP Fund and recycle capital into other investment opportunities. CPP Investments continues to view residential real estate, including student, single-family and senior housing, as an attractive sector, supported by structural housing demand, demographic trends and the need for different types of high-quality, professionally managed rental accommodation in major urban markets.”

Penny Ransom, CEO, Investment Management, Lendlease, said: “We are proud to have partnered with CPP Investments on the substantial urban renewal of Elephant Park and its enduring contribution to the community. The precinct demonstrates Lendlease’s strong placemaking capabilities in the UK and focuses on sustainable living, evidenced by Elephant Park’s leading 5-star GRESB Rating and award-winning recognition.”