The Canada Pension Plan Investment Board announced Wednesday a joint venture partnership to develop a $1.56-billion, residential, office and retail complex in London.

The announcement follows the CPPIB’s announcement on Tuesday of its biggest deal ever, a whopping $1.8-billion investment in 10 regional shopping malls and two redevelopment sites in the United States.

The agreement with U.K.-based commercial property developer Land Securities Group PLC is to develop the Victoria Circle, London SW1 complex.

It involves five new buildings opposite Victoria Station, where the London railway and London Underground meet.

Land Securities owns the existing properties and will sell them to the joint venture for £163 million (C$254.6 million). It will operate as the development manager and will lease to tenants.

A demolition of the existing buildings will happen after the current tenants move out, sometime after the beginning of September.

“The Victoria Circle project supports CPPIB’s real estate strategy to own and develop properties in key markets for the long term,” said Graeme Eadie, CPPIB’s senior vice president of real estate investments.

The CPPIB says the first phase of the 910,00-square-foot project is expected to be completed in 2016 and the second in 2018.