LONDON, Oct. 24, 2024 /CNW/ – Canada Pension Plan Investments (CPP Investments) has partnered with global real estate investment firm Kennedy Wilson (NYSE:KW) to invest in a new single-family rental housing joint venture ( We have launched a joint venture (hereinafter referred to as “JV”). “) in the UK. CPP Investments will commit an initial £500m and Kennedy Wilson will commit £56m. The joint venture is initially targeting an asset value of approximately £1bn, including leverage, and will Additional capital may be invested as opportunities arise. CPP Investments will hold a 90% stake in the venture, with Kennedy Wilson retaining a 10% ownership interest.
Cringleford Heights, Norwich, UK (CNW Group/Canada Pension Plan Investment Board)
Through partnerships with homebuilders, the joint venture will provide residents with excellent connectivity, attractive local amenities, and proximity to strong employment prospects and educational institutions in a strong and growing local economy. Target energy-efficient new housing stock.
The investment program is seeded with two developments sourced by Kennedy-Wilson, including Barratt Redrow-built in Norwich, where Kennedy-Wilson is currently leasing the first phase of completed homes. This includes units inside and units delivered by Miller Homes in Stevenage. Kennedy Wilson has an active pipeline of over 1,100 opportunities totaling over £360m, with the capacity to reach 4,000 homes once the capital is fully deployed.
Tom Jackson, head of European real estate at CPP Investments, said: “Private capital can play an important role in addressing the current shortage of high quality rental housing in the UK. Yes, if it is managed and provides a great customer experience.” “Investing in the UK detached housing sector is well-aligned with our broader real estate strategy of making scalable investments in high-quality cash-flow accretive assets. We look forward to launching and delivering significant benefits to our 22 million donors and beneficiaries of the CPP Fund. ”
Kennedy Wilson leverages its expertise as a long-term owner, operator and debt provider of more than 60,000 rental homes owned or financed by Kennedy Wilson-managed platforms throughout the United States, United Kingdom and United Kingdom. , manage joint ventures and earn customary fees. And Ireland. The company has established a global housing platform comprised of vertically integrated investment, asset management and development teams, as well as operational and reporting systems.
“Housing has been an important part of Kennedy Wilson’s investment strategy for many years and our joint venture with CPP Investments, one of the world’s leading institutional investors, will provide much-needed rental housing to local families. It will further our efforts,” said Mike Pegler, president of Kennedy. wilson europe. “The structural challenges facing institutionally managed rented housing in the UK provide a clear investment rationale to enter the market and leverage our deep experience in this sector. We are actively seeking opportunities to grow our portfolio that offer scalability potential, with consistent risk-adjusted returns in this high-conviction subsector.”
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About CPP investment
The Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages funds in the best interest of the more than 22 million Canada Pension Plan contributors and beneficiaries. Investments are made around the world in public and private equity, real estate, infrastructure, bonds, and more to build a diversified portfolio of assets. CPP Investments is headquartered in Toronto with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney and is independent of the Canada Pension Plan and governed and managed independently of government. As of June 30, 2024, the total amount of the Fund amounted to C$646.8 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram, or X. @CPPInvestments.
About Kennedy Wilson
Kennedy Wilson (NYSE: KW) is a leading real estate investment firm with more than $27 billion in assets under management in high-growth markets in the United States, United Kingdom, and Ireland. With decades of experience, our relationship-oriented team excels at identifying opportunities and building value through market cycles, and has closed more than $50 billion in total transactions across the real estate sector since going public in 2009. I am. Kennedy Wilson owns, operates, and builds real estate. We target opportunistic investments within our high-quality core real estate portfolio and with our partners through our investment management platform. For more information, please visit www.kennedywilson.com.
Special Note Regarding Forward-Looking Statements
Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are estimates that reflect the current expectations of our management and may prove to be inaccurate and involve known and unknown risks. is based on forward-looking statements, projections and assumptions. Accordingly, our actual results, performance or achievements or industry results may differ from those expressed or implied by these forward-looking statements, including for reasons beyond our control. may differ significantly and unfavorably. Some forward-looking statements may include statements that include “believes,” “expects,” “anticipates,” “estimates,” “plans,” “intends,” “projects,” “suggests,” “could,” Expressions such as “there is a possibility” and “maybe.” These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. We undertake no obligation to update any forward-looking statements, except as required by law.
CPP Investments logo (CNW Group/Canada Pension Plan Investment Board) Kennedy Wilson logo (CNW Group/Canada Pension Plan Investment Board)
Source Canada Pension Plan Investment Board
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