Hollwyood touch as N.American duo target UK with single family house rental model

Brains behind the scheme are Canada Pension Plan Investment Board (CPP Investments) in Toronto and global real estate investment company Kennedy Wilson which is quoted in New York and anchored in Beverley Hills, California – home to a large cluster of Hollywood stars.

CPP Investments will initially commit £500 million and Kennedy Wilson £56m. The JV will have an initial target of approximately £1 billion of asset value, including leverage, with the potential to commit further capital depending on market opportunities.

CPP Investments will hold 90 per cent of the venture and Kennedy Wilson 10 per cent.

Through partnerships with housebuilders, the JV is designed to target energy efficient, new-build housing stock in strong and growing local economies that offer residents excellent connectivity, attractive local amenities, and proximity to strong employment prospects and educational institutions.

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 2025.

Kennedy Wilson has an active pipeline of opportunities totalling over £360 million and 1,100 units, with the capacity to reach 4,000 units at full capital deployment.

Tom Jackson, Head of Real Estate Europe at CPP Investments, says: “Private capital can play an important role in addressing the current undersupply of high-quality rental housing in the UK, particularly where it is professionally managed to provide a great customer experience.

“Investing into the UK single-family housing sector aligns well with our broader real estate strategy, to undertake scalable investments into high quality assets with growing cash flows.

“We look forward to launching the JV alongside Kennedy Wilson to deliver strong returns for 22 million contributors and beneficiaries of the CPP fund.”

Kennedy Wilson will manage the JV and earn customary fees, leveraging its expertise as a long-term owner, operator and debt provider for rental housing with more than 60,000 units owned or financed by Kennedy Wilson managed platforms across the US, the UK, and Ireland.

The company’s established global residential platform comprises a vertically integrated investment, asset management, and development team plus operating and reporting systems.

Mike Pegler, President, Kennedy Wilson Europe, says: “Residential has long been a crucial part of Kennedy Wilson’s investment strategy and our JV with CPP Investments, a leading global institutional investor, will propel our efforts to deliver much-needed rental homes for local families.

“The structural challenges facing institutionally managed rental housing in the UK provides a clear investment rationale to enter the market and leverage our deep experience in the sector.

“We are actively seeking opportunities to grow our portfolio, which offers substantial scalability potential in the UK, driving consistent risk adjusted returns in this high-conviction subsector.”

Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, the Fund totalled C$646.8 billion.

With over $27 billion of assets under management in high growth markets across the United States, the UK and Ireland, Kennedy Wilson draws on decades of experience. Its team excels at identifying opportunities and building value through market cycles, closing more than $50 billion in total transactions across the property spectrum since going public in 2009.