Canadian Investors Form £1.5bn UK Housing Platform

Canadian institutions Public Sector Pension Investment Board (PSP Investments) and Ontario Teachers’ Pension Plan are investing £1.5bn (€1.76bn) in UK housing in collaboration with specialist real estate investment manager Long H

BY Realty Plus
Published - Thursday, 05 Aug, 2021

Canadian Investors Form £1.5bn UK Housing Platform

Canadian institutions Public Sector Pension Investment Board (PSP Investments) and Ontario Teachers’ Pension Plan are investing £1.5bn (€1.76bn) in UK housing in collaboration with specialist real estate investment manager Long Harbour. Cadillac Fairview, the US$35bn (€29.5bn) real estate arm of Ontario Teachers’, has joined Long Harbour Multi Family (LHMF), a £500m build-to-rent joint venture set up by Long Harbour and PSP Investments in 2019. Nearly all of the original the capital has been committed and the enlarged platform now has £1.5bn to forward-fund, build and manage private-rented residential assets. This investment aligns with their strategic objective of expanding our investment portfolio in Europe by forming partnerships with best-in-class operators and developers in attractive asset classes, such as residential, life sciences, office and logistics. It also complements our global residential portfolio, which includes, large active pipelines across the US and Canada. UK build-to-rent is a conviction sector for PSP and complements our global residential portfolio. Together, we aim to provide high quality housing that will have a positive impact on local communities while providing stable investment returns. LHMF will also incorporate Way of Life, Long Harbour’s residential management business, turning the joint venture in a platform that encompasses investment, development and operational capabilities. Way of Life already manages more than 2,800 units in operation and under development. LHMF’s portfolio includes a 480-home development in Tottenham Hale, London, which was forward-funded for £226m across two phases of development. The project is due to be completed in 2023 and the first phase is to be launched this month.