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Ivanhoé Cambridge London JV reaches £430m

A partnership between the real estate arm of the Caisse de dépôt et placement du Québec, Apollo Global Management and Residential Land has expanded its presence in the city with the £140m acquisition of Thurloe Estate and Strathmore Court.

A joint venture between Ivanhoé Cambridge, the real estate arm of the Caisse de dépôt et placement du Québec , and affiliates of Apollo Global Management and Residential Land has expanded its presence in London with the acquisition of Thurloe Estate and Strathmore Court for a total of £140 million (€169 million; $232 million). The transactions bring the partnership’s total investment in the city to £430 million.

The joint venture acquired the Brandeaux Group's interests in the Thurloe Estate for approximately £100 million. The property comprises Pond Place, Pelham Court and Thurloe Court, totaling 127,566 square feet of residential and retail space. The estate includes 141 flats and a number of anchor tenants such as Ralph Lauren and OKA. Meanwhile, Strathmore Court was acquired in an off-market transaction for approximately £40 million. Located at 143 Park Road, opposite Regent’s Park, the property offers 21 residential units on six stories, for a total of 9,500 square feet, and 10 retail units totaling just under 5,000 square feet.

“These are strong assets in prime locations that offer great potential for added value. Based on our common expertise and dedication to exceptional properties, we look forward to repositioning the buildings in a true London spirit of quality real estate,” said Sylvain Fortier, Ivanhoé Cambridge’s executive vice president of residential, hotels and real estate investment funds in a statement. “Our partners are playing an invaluable role in helping Ivanhoé Cambridge successfully develop a critical mass of high-quality residential assets in the core of London.”

“Our continuing strategy is to purchase prime central London residential space, and opportunities such as the Thurloe Estate perfectly reflect this. The opportunity to invest in existing stock does not come along very often and especially in such a prime location popular among international investors,” noted Bruce Ritchie of Residential Land, who coordinated the transaction. “Of all properties bought in South Kensington last year, 77 percent were by international buyers, which we believe is clear evidence that the partnership is focusing its strategies in the right direction.”

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. 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. In October, the partnership acquired 105 residential units representing an investment of C$73 million ($70 million).