Residential Land, London’s largest prime central private landlord, today announced the launch of a joint venture partnership with Apollo Global Real Estate Management and Ivanhoe Cambridge.
The partnership brings together Ivanhoe Cambridge (a real estate subsidiary of the Caisse de dépôt et placement du Québec) – one of the largest institutional fund managers in Canada, Apollo Global Real Estate Management (the real estate arm of Apollo Global Management, LLC) and London property specialists, Residential Land.
The venture will look to exclusively acquire prime London residential property with an initial investment of over £100m. The partnership will invest in new properties in line with the high demand for good quality privately rented accommodation in the capital.
In October 2010, Residential Land appointed Macquarie Capital to advise on the creation of a residential investment partnership for Prime Central London. This has led to an affiliation with Apollo Global Real Estate Management acting as asset manager and Residential Land appointed as the property and development manager on behalf of the partnership. The partnership aims to acquire new properties from the open market with all parties co-investing, Residential Land will managing the sourcing of properties and all acquisitions.
Prime London Residential Limited, the existing collaboration between Residential Land and Brett Palos (stepson of Sir Philip Green), has sold four assets to seed the new partnership, at a total sale price of over £100m. This seed portfolio comprises 207 income producing apartments.
Details of the parties in the new venture partnership are listed below:
Ivanhoé Cambridge is one of the 10 largest real estate companies in the world. Through its multiple subsidiaries, it holds assets in 24 countries valued at over CAD$30bn as at December 31, 2010. Ivanhoé Cambridge is a real estate arm of the Caisse de dépôt et placement du Québec (www.lacaisse.com), one of Canada’s leading institutional fund managers. Ivanhoé Cambridge’s residential portfolio invests in rental buildings in large urban centres in Canada, the United States and Europe. For more information, visit www.ivanhoecambridge.com.
Apollo Global Management, LLC [NYSE:APO]
Apollo Global Management is a leading global alternative asset manager with offices in New York, Los Angeles, Houston, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo Global Management had assets under management of more than US$65bn as of September 30, 2011, in private equity, credit-oriented capital markets and real estate funds invested across a core group of nine industries where the company has considerable knowledge and resources. For more information about Apollo Global Management, please visit www.agm.com.
Apollo Global Real Estate Management is a fully integrated operating division of Apollo Global Management that sources, underwrites and structures investments in commercial real estate assets, companies and operating platforms through its multi-disciplinary team of real estate investment professionals. Apollo Global Real Estate Management’s investment professionals manage US$7.9bn in real estate assets as of September 30, 2011.
Residential Land group of companies has been one of the most prolific residential investors in prime central London property in the last decade. Residential Land currently owns and manages a portfolio of approximately 1,000 flats, houses, hotels and commercial properties across 24 postcodes in prime central London. It is valued in excess of £1bn. Residential Land also has extensive experience in co-investing in partnerships with both private and institutional investors.