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

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

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