Ivanhoé Cambridge JV expands London portfolio

Ivanhoé Cambridge, the real estate investment arm of the Caisse de dépôt et placement du Québec, has added 105 residential units to its London portfolio, representing an investment of C$73 million ($70 million). The transaction, completed through a partnership with Apollo Global Real Estate and London residential property company Residential Land, brings Ivanhoé Cambridge’s total number of London rental housing units to 359.

A statement from the Montreal-based firm stated that the acquisition of the two properties, Kew Bridge Court and Imperial House, is a timely one due to the “rising demand, shortage of rental housing and tighter mortgage conditions,” which make it difficult for London residents to find accommodations. 

“These new acquisitions strengthen our position in London’s much sought-after market and reinforce our business relationship with Residential Land and Apollo, key partners that play a major role in the implementation of our investment strategy in the British capital,” said Sylvain Fortier, executive vice president of residential and hotels at Ivanhoé Cambridge.

Formed in February 2012, the partnership with Apollo and Residential Land seeks to purchase prime residential property in London and had an initial investment of more than £100 million (€120 million; $157 million). Ivanhoé Cambridge is the majority partner in the venture, while Apollo invests directly and Residential Land works as a strategic asset manager, sourcing and managing the acquisitions.

Kew Bridge Court comprises 94 apartments in five buildings located in Chiswick, a suburb less than 100 kilometers west of Buckingham Palace. The acquisition, which the firm described as “a high-yielding investment opportunity of scale,” includes the right to develop and build an additional seven residential units. Meanwhile, the Imperial House multifamily complex includes 11 apartments in the central London borough of Kensington and Chelsea.