Canada Pension Plan Investment Board (CPP Investments) has
partnered with global real estate investment company Kennedy Wilson
(NYSE:KW) to launch a new single-family rental housing joint
venture (“the JV”) in the United Kingdom. CPP Investments will
initially commit £500 million, with Kennedy Wilson committing £56
million. The JV will have an initial target of approximately £1
billion of asset value, including leverage, with the potential to
commit further capital depending on market opportunities. CPP
Investments will hold 90% of the venture and Kennedy Wilson will
hold a 10% ownership interest moving forward.
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Through partnerships with housebuilders, the JV will target
energy efficient, new-build housing stock in strong and growing
local economies that offer residents excellent connectivity,
attractive local amenities, and proximity to strong employment
prospects and educational institutions.
The investment program is seeded with properties from two
developments sourced by Kennedy Wilson, including units under
construction by Barratt Redrow in Norwich, where Kennedy Wilson is
now leasing up the first phase of completed homes, and units by
Miller Homes in Stevenage, which will deliver completed houses from
Q2 2025. Kennedy Wilson has an active pipeline of opportunities
totaling over £360 million and 1,100 units, with the capacity to
reach 4,000 units at full capital deployment.
“Private capital can play an important role in addressing the
current undersupply of high-quality rental housing in the UK,
particularly where it is professionally managed to provide a great
customer experience,” said Tom Jackson, Head of Real Estate Europe
at CPP Investments. “Investing into the UK single-family housing
sector aligns well with our broader real estate strategy, to
undertake scalable investments into high quality assets with
growing cash flows. We look forward to launching the JV alongside
Kennedy Wilson to deliver strong returns for 22 million
contributors and beneficiaries of the CPP fund.”
Kennedy Wilson will manage the JV and earn customary fees,
leveraging its expertise as a long-term owner, operator, and debt
provider for rental housing with more than 60,000 units owned or
financed by Kennedy Wilson managed platforms across the United
States, the UK, and Ireland. The company’s established global
residential platform comprises a vertically integrated investment,
asset management, and development team, and operating and reporting
systems.
“Residential has long been a crucial part of Kennedy Wilson’s
investment strategy, and our JV with CPP Investments, a leading
global institutional investor, will propel our efforts to deliver
much-needed rental homes for local families,” said Mike Pegler,
President, Kennedy Wilson Europe. “The structural challenges facing
institutionally managed rental housing in the UK provides a clear
investment rationale to enter the market and leverage our deep
experience in the sector. We are actively seeking opportunities to
grow our portfolio, which offers substantial scalability potential
in the UK, driving consistent risk adjusted returns in this
high-conviction subsector.”
About 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 22 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, 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 June 30, 2024, the Fund totalled C$646.8 billion.
For more information, please visit www.cppinvestments.com or follow
us on LinkedIn, Instagram or on X @CPPInvestments.
About Kennedy Wilson
Kennedy Wilson (NYSE: KW) is a leading real estate investment
company with over $27 billion of assets under management in high
growth markets across the United States, the UK and Ireland.
Drawing on decades of experience, our relationship-oriented team
excels at identifying opportunities and building value through
market cycles, closing more than $50 billion in total transactions
across the property spectrum since going public in 2009. Kennedy
Wilson owns, operates, and builds real estate within our
high-quality, core real estate portfolio and through our investment
management platform, where we target opportunistic investments
alongside our partners. For further 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 our management’s current expectations, are based on
our current estimates, expectations, forecasts, projections and
assumptions that may prove to be inaccurate and involve known and
unknown risks. Accordingly, our actual results, performance or
achievement, or industry results, may differ materially and
adversely from the results, performance or achievement, or industry
results, expressed or implied by these forward-looking statements,
including for reasons that are beyond our control. Some of the
forward-looking statements may be identified by words like
“believes”, “expects”, “anticipates”, “estimates”, “plans”,
“intends”, “projects”, “indicates”, “could”, “may” and similar
expressions. These statements are not guarantees of future
performance and involve a number of risks, uncertainties and
assumptions. We assume no duty to update the forward-looking
statements, except as may be required by law.
KW-IR
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CPP Investments
Steve McCool Public Affairs & Communications +44 7780 224
245 smccool@cppib.com
Kennedy Wilson
Investors Daven Bhavsar, CFA Head of Investor Relations
+1 (310) 887-3431 dbhavsar@kennedywilson.com
European Media Dido Laurimore and Eve Kirmatzis +44 20
3727 1000 kennedywilson@fticonsulting.com
U.S. Media Emily Heidt Vice President, Communications +1
(310) 887-3499 eheidt@kennedywilson.com
Kennedy Wilson (NYSE:KW)
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