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BP pension fund agrees JV for London site

The pension fund, which owns direct and indirect property holdings, has teamed up with London real estate company Great Portland Estates to create a mixed use block.

BP Pension Fund has struck a 50/50 joint venture with Great Portland Estates to develop a significant office, retail and residential scheme near Blackfriars Bridge in central London.

BP Pension Fund’s property nominee, Ropemaker Properties, has formed the Great Ropemaker Partnership to carry out the project, which is expected to deliver 207,000 square feet of space on a site being cleared at 240 Blackfriars Road.

The JV has acquired the site for an initial £20.5 million (€26 million; $41 million). A further £2 million is payable in enhanced fees if the site is redeveloped and another £5 million in priority payments become due if various performance hurdles are met.

Toby Courtauld, chief executive of GPE, said: “We are delighted to have formed this joint venture with the BP Pension Fund. It allows us to spread our development risk at Blackfriars Road and it forges a new relationship with a high quality partner opening up new avenues for future business together.”

According to data from PERE.com’s sister online LP database PEREconnect.com, BP Pension Fund has 6 percent of assets allocated to real estate. As well as direct holdings it has indirect holdings via core and core plus real estate vehicles.