SYDNEY-The Canada Pension Plan Investment Board has formed ajoint venture with Lend Lease Corp. to develop and hold two officetowers for $2 billion. The two buildings, totaling about 1.8million square feet, will be built in the Barangaroo South Projectin the city’s CBD.

The venture includes the Australian Prime Property FundCommercial, a wholesale investment vehicle that is managed by LendLease. The pension board is providing half the development cost,while Lend Lease and the fund will each commit 25% to the jointventure.

Graeme Eadie, SVP of real estate investments with CPPIB, said ina statement that the project is the first direct office investmentfor the pension board in Australia, and the largest investment in asingle real estate asset to date. “We will be able to gain asignificant exposure in Sydney’s Central Business District througha premium-grade office development offering the tenants highlyefficient and environmentally sensitive facilities,” Eadie said.“This investment supports our real estate strategy to acquirepremium, long-term assets in key global markets.”