Federated Hermes, on behalf of the BT Pension Scheme (BTPS), has announced a new partnership with Canada Pension Plan Investment Board (CPP Investments) to own and develop Silverstone Park, an engineering and technology business park in Silverstone, UK.
MEPC, the wholly owned subsidiary of Federated Hermes, will continue in their role as development and asset manager, having established the Park over the past eight years on behalf of BTPS.
CPP Investments will commit £135 mln (€158 mln) to the joint venture and hold a 50% interest, with further investment planned to support the future development pipeline of the Park. Silverstone Park stands at 676,000 sq ft (62,800 m2) of income-producing assets let to a diverse tenant base in addition to 92.6 acres of land upon which it has long term development potential for a range of uses.
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.
Chris Taylor, CEO Real Estate, Federated Hermes said: ‘This is a noteworthy extension of our highly successful partnership with CPP Investments. Our vision for Silverstone Park is to build on the history, heritage and global reputation of the Silverstone Circuit, creating a home for engineering, innovation and business development beyond the world of motor sport, and we are delighted to share these aspirations with our joint venture partner.’
Tom Jackson, managing director, head of Real Estate UK, CPP Investments said: ‘We have successfully partnered with Federated Hermes on several projects in the UK, investing in long-term development projects in growth locations across the UK, where access to talent and innovation is strong, including Birmingham and Leeds city centres, Milton Park and now Silverstone Park. 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.’
