Kennedy Wilson partners with CPP Investments to launch rental housing JV

Canada Pension Plan Investment Board, or CPP Investments, has partnered with global real estate investment company Kennedy Wilson (KW) to launch a new single-family rental housing joint venture, or JV, in the United Kingdom. CPP Investments will initially commit GBP 500M, with Kennedy Wilson committing GBP 56M. The JV will have an initial target of approximately GBP 1B 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. 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. Kennedy Wilson has an active pipeline of opportunities totaling over GBP 360M and 1,100 units, with the capacity to reach 4,000 units at full capital deployment.