UK: Real estate investor and developer Long Harbour is to create a £1.5 billion BTR platform with JV partners PSP Investments and Cadillac Fairview.
The platform will incorporate Way of Life, Long Harbour’s residential management business.
In 2019, Long Harbour and PSP Investments set up The Long Harbour Multi Family (LHMF) joint venture, with £500 million of initial capital. The LHMF portfolio includes 480 homes for rent in Tottenham Hale, north London.
Long Harbour Chief executive William Astor said: “This latest round of investment brings LHMF’s total capital to in excess of £1.5bn, which, combined with our Way of Life operational capabilities, creates one of the UK’s largest and most compelling build-to-rent platforms. Our priority for new sites will be London and the South East, where we have a strong pipeline of potential assets in addition to our existing projects.”
Stéphane Jalbert, managing director, real estate investments for Europe and Asia Pacific at PSP Investments, added: “We are pleased to continue growing our established and successful partnership with Long Harbour and now Cadillac Fairview, accelerating the scale and diversification potential of the venture. 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.”
Jenny Hammarlund, managing director and head of Europe at Cadillac Fairview, said: “The residential sector is a key area of focus for Cadillac Fairview globally and we are pleased to be investing in the sector at scale in the UK alongside Long Harbour, an innovative build to rent operator, and PSP Investments, a strong JV partner with a shared vision. This investment aligns with our 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.”
