has bought a development site in central London for a fund it manages.
The private equity firm said it will invest Β£300m (β¬403.3m) in the redevelopment of a two-acre site next to Borough market, on the south bank of the River Thames. Completion is due for 2018.
The investment, for Meyer Bergman European Retail Partners II (MBERP II), is the latest in a series of high profile commitments to the area.
The Carlyle Group said it was looking for a joint venture partner on its mixed-use, 1.4m sq ft Bankside Quarter project south of the Thames. The investment manager appointed Knight Frank to find an investor with which to partner after βunsolicited enquiriesβ from Middle Eastern, Asia-Pacific and North American investors.
An ongoing tower redevelopment by CIT Developers has attracted investment from a joint venture between Hermes and Canada Pension Plan Investment Board (CPPIB). The pair paid around Β£140m for the office and retail elements of the mixed-use development, due for completion between October this year and mid-2016.
George Walsh-Waring, Meyer Bergman principal, said the south bank area is undergoing βrapid changeβ.
βThe retail offering is woefully inadequate given the needs of residents and the huge flow of tourists, commuters and office workers passing through every day,β he said. βIt is a signature investment for the fund.β
MBERP II and central London developer Sherwood Street are buying the leasehold to the site. The freehold remains with Network Rail.
Tom Sherwood, founder of Sherwood Street, said: βYou arenβt going to get a better location in central London that is lacking a quality retail offering for shoppers than this.β
MBERP II is deploying capital since a final close mid last year at the fundβs cap of β¬750m.
The fund is focused on assets in the UK, Germany, France, the Nordic region, and Poland. Typical transaction values range between β¬30m and β¬300m.
