Realstar and QuadReal Property Group’s private rented sector (PRS) partnership has invested £100m (€120m) to buy an apartment complex in east London from Kennedy Wilson.
The London rental joint venture has bought Pioneer Point in Ilford, which includes 294 residential units within two towers - 35,000sqft of fully leased commercial space and 10,000sqft of extensive resident amenities.
Kennedy Wilson acquired the non-performing loan secured against the freehold interest of Pioneer Point in May 2015 and took direct ownership in February 2016.
Mike Pegler, head of UK at Kennedy Wilson, said: “Since opportunistically acquiring Pioneer Point, we executed a wide-ranging, value-enhancing asset management programme that put a spotlight on the breadth of our asset management expertise and brought new life to this landmark building.”
Kennedy Wilson said the $127m (€117m) of net proceeds from the sale will be recycled into new European acquisitions and development.
Ryan Prince, a managing partner of Realstar, said Realstar believes that properly managed, large-scale residential rental assets are a critical element to help solve London’s housing needs and Pioneer Point represents an opportunity to help more residents experience Realstar’s 45-year track record of customer service alongside great amenities and convenient location.
“Furthermore, we’re incredibly excited to continue our 25+ year investment relationship with QuadReal”, the real estate arm of British Columbia Investment Management Corporation.
“Pioneer Point is a unique investment as the core strategy for the partnership is to acquire and develop new-build rental properties as we’ve done to date in Wembley, Southall and Colindale,” Prince said.
Prince said the joint venture is already well underway, with over £400m of assets already secured and it expects to find additional opportunities with a view to reaching over £1bn of assets over the upcoming year or two.
Jay Kwan, managing director of QuadReal, said the Realstar and QuadReal teams share the benefits of experience and a long-standing relationship with roots in Canada from 1993 and in the UK since 2008.
“The teams share a commitment to offering the best accommodation to their customers and a conviction about the enduring strength of the UK rental housing market, and QuadReal is excited to continue working with a high-quality partner in Realstar.”