Realstar and QuadReal Property Group鈥檚 private rented sector (PRS) partnership has invested 拢100m (鈧�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: 鈥淪ince 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.鈥�
Kennedy Wilson said the $127m (鈧�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鈥檚 housing needs and Pioneer Point represents an opportunity to help more residents experience Realstar鈥檚 45-year track record of customer service alongside great amenities and convenient location.
鈥淔urthermore, we鈥檙e incredibly excited to continue our 25+ year investment relationship with QuadReal鈥�, the real estate arm of British Columbia Investment Management Corporation.
鈥淧ioneer Point is a unique investment as the core strategy for the partnership is to acquire and develop new-build rental properties as we鈥檝e done to date in Wembley, Southall and Colindale,鈥� Prince said.
Prince said the joint venture is already well underway, with over 拢400m of assets already secured and it expects to find additional opportunities with a view to reaching over 拢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.
鈥淭he 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.鈥�
