Canada Pension Plan Investment Board (CPP Investments) and Kennedy Wilson have added £100m (€115.5m) worth of assets to their recently established UK single-family rental housing venture.
The pair have agreed to acquire approximately 275 units through three separate transactions, increasing their joint venture’s assets to about 1,180 homes in just nine months since launch.
The latest deal involves assets located across three sites in Milton Keynes Derby and Cheltenham. These units were acquired from housebuilders Dandara and Miller Homes.
In October last year, CPP Investments committed an initial £500m to the investment venture formed in partnership with Kennedy Wilson.
The Canadian fund holds a 90% interest in the venture, while Kennedy Wilson will commit £56m to become a 10% shareholder and will target new-build housing stock.
At the time when the partnership was formed – with an initial target asset value of approximately £1bn including leverage – the companies said it had been seeded with properties from two developments sourced by Kennedy Wilson. The seed assets comprise units currently under construction by Barratt Redrow in Norwich.
Kennedy Wilson said the partnership has so far committed to deploy approximately £390m and contracted on 1,180 units across 13 sites in locations including Bedford, Cambridge, Derby, Didcot, Great Dunmow, Ipswich and Wolverhampton with a total of five housebuilders including Barratt Redrow and Cala Homes.
Mike Pegler, President, Kennedy Wilson Europe, said: “We continue to deploy capital swiftly into a growing portfolio of single-family housing for this platform and are pleased to report that we are making excellent progress with our strategy, reaching approximately 1,180 units in just nine months.
“The platform’s first newly completed homes, located in Norwich and Bedford, are now available to rent, and we have seen high levels of demand from the rental market. We expect these strong foundations to underpin our future pipeline as we continue to deploy capital and scale the platform.”
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