Federated Hermes, on behalf of the BT Pension Scheme (BTPS), and Canada Pension Plan Investment Board (CPP Investments), are partnering to own and develop Silverstone Park, an engineering and technology business park adjacent to the home of the Formula One Grand Prix in the UK.

CPP Investments will commit £135m (€157m) to the joint venture and hold a 50% interest, with further investment planned to support the future development pipeline of the park.

Federated Hermes subsidiary MEPC will continue as development and asset manager, having established the park over the past eight years on behalf of the £57bn BTPS, which is the UK’s largest corporate defined benefit scheme.

Silverstone Park has 676,000sqft of leased income-producing assets and 92.6 acres of land upon which it has long term development potential for a range of uses. It is located in the Oxford-Cambridge Innovation Arc, one of the fastest-growing areas of the UK.

Chris Taylor, CEO of real estate at Federated Hermes said the Silverstone Park joint venture was “a noteworthy extension of our highly successful partnership with CPP Investments”.

CPP Investments and Federated Hermes, as investment manager of BTPS’s UK property investments, have previously co-invested on the development of other MEPC-managed assets in Paradise Birmingham, Wellington Place and Milton Park.

Tom Jackson, managing director and head of UK real estate at CPP Investments, added: “We believe our investment in Silverstone Park will support the scheme’s next phase of growth, further diversify our real estate portfolio and deliver attractive long-term, risk-adjusted returns for CPP contributors and beneficiaries.”

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