CPP Investments, Federates Hermes expand UK real estate JV

Canada Pension Plan Investment Board has agreed to be a joint venture partner with Federated Hermes on the development of UK-based One Centenary Way at Paradise Birmingham.

Canada Pension Plan Investment Board has agreed to be a joint venture partner with Federated Hermes on the development of UK-based One Centenary Way at Paradise Birmingham. CPP Investments is committing about £56 million. One Centenary Way is a 13-storey mixed-use development.


London (15 November, 2021) – The international business of Federated Hermes on behalf of BT Pension Scheme (BTPS) and Canada Pension Plan Investment Board (CPP Investments) today announce they are to become joint-venture partners on the development of One Centenary Way at Paradise Birmingham, with CPP Investments committing approximately £56m. This transaction follows CPP Investments and Federated Hermes’ joint-venture funding of the first phase of Paradise, Birmingham which included the development of One and Two Chamberlain Square.

The joint venture will fund the development of One Centenary Way, a 13-storey mixed-use development. The site will deliver 286,000 square feet of office space in addition to ground floor retail and other public spaces. Completion is expected for Q1 2023.

Chris Taylor, CEO of Real Estate at the international business of Federated Hermes and Chairman of MEPC, said: “This deal is a vote of confidence in the city of Birmingham and Paradise specifically. We have worked closely with CPP Investments on the delivery of the first phase of the project and are thrilled that they are investing in One Centenary Way, which will further add to Paradise’s credentials as a leading business destination in the U.K. Paradise is a landmark development for the people of Birmingham, and we look forward to continuing our ongoing work with all of our partners.”

Throughout the design period of One Centenary Way, supporting a sustainable future for the built environment and providing tenants with low-carbon solutions, were a key focus. The site has been low-carbon during construction and upon completion the building will offer carbon reducing solutions to tenants. Examples include; a ‘smart enabled’ digital system architecture to allow occupiers to realise energy savings and streamline operations, and the use of all-electric HVAC and heat pump technology to utilise thermal energy. One Centenary Way is targeting a BREEAM Excellent rating1 and Energy Performance Certificate B rating2. In addition, the building’s basement will host Birmingham’s first public cycle hub.

Tom Jackson, Managing Director, Head of U.K. Real Estate, CPP Investments, said: “We are delighted to extend our successful partnership with Federated Hermes through this investment in One Centenary Way. The project is very well positioned to support the growth of Birmingham as a modern and expanding centre in the U.K. and deliver on the increasing demand from both local and international corporates who are looking for high-quality office space within the city. Our partnership with Federated Hermes, and the existing joint venture investments we have together in Birmingham, Leeds, Oxford and London, deliver strong results to help us support the CPP’s contributors and beneficiaries and form part of our wider commitment to continued investments in the U.K.”

The Paradise redevelopment is being brought forward through Paradise Circus Limited Partnership (PCLP), a private-public joint venture with Birmingham City Council. The private sector funding is being managed by the international business of Federated Hermes.

Upon completion of all phases, and at almost 2 million square feet, Paradise Birmingham will deliver up to ten new flagship buildings offering offices, shops, bars, cafés, restaurants, a high-quality hotel and a 49-storey residential tower. At 17 acres of the city centre, Paradise Birmingham forms a landmark destination. Arup, as announced in August 2021, has committed to One Centenary Way, taking 68,000 square feet over three floors.

This follows the announcement that Argent’s eight-strong team working on the Paradise, Birmingham scheme joined MEPC, a wholly owned development and asset management subsidiary of Federated Hermes, on 1 July 2021. For MEPC and Federated Hermes, operations remain the same; to continue to focus on delivering the second and third phases of the world-class regeneration of Paradise, Birmingham.

1 BREEAM is an international scheme, led out of the U.K., that provides independent third-party certification of the assessment of the sustainability performance of individual buildings, communities and infrastructure projects. BREEAM certification in the U.K. is developed and delivered by BRE Global, a subsidiary of the BRE Group.

2 Energy performance certificates (EPCs) are a mandatory certificate in the U.K., measuring a building’s energy efficiency. The rating ranges between A (Very efficient) – G (Inefficient).

The International business of Federated Hermes
Federated Hermes, Inc. is a leading global investment manager with $645.8 billion in assets under management as of June 30, 2021. Guided by our conviction that responsible investing is the best way to create wealth over the long term, our investment solutions span equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies. Providing world-class active investment management and engagement services to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.

Headquartered in Pittsburgh, Federated Hermes’ nearly 2,000 employees include those in London, New York, Boston and offices worldwide. Follow us on Twitter: @FedHermesIntl
Website: www.hermes-investment.com

CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2021, the Fund totalled $541.5 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.