Ivanhoe Cambridge expands Prime London residential portfolio

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Ivanhoe Cambridge, the real estate subsidiary of Caisse de depot et placement du Quebec, has expanded its investment in the multi-residential sector in London after paying CAD100m (€63.3m) for majority interests in two properties.

The two assets are the 19-unit Peony Court in South Kensington and the 28-unit Chantrey House in Belgravia.

Both of these assets are located in highly sought-after districts in prime central London.

Daniel Fournier, chairmen and chief executive at Ivanhoe Cambridge, said:

“London is an attractive market, and continuing our expansion there is a stimulating challenge.”

The company sees the residential market in London as a strong one, where the pressure on rents is increasing and the same is happening with asset values.

The two properties both had occupancy at around 90% when the transactions were completed.

Ivanhoe Cambridge considers both of these properties to be core-plus assets.

The company overall is more interested in value-added deals where it can achieve IRRs in the mid-teens range with a medium holding period.

Peony Court is a complex that has two-storey townhouses and two interior garages, which the new owner feels are exceedingly rare in London.

The purchase of this property was accomplished under the existing partnership Ivanhoe Cambridge has with London-based Residential Land and Apollo Global Real Estate.

Roger Orf, head of Apollo Global Real Estate in Europe, said:

“Peony Court is a welcome addition to our growing multi-residential portfolio with Residential Land and Ivanhoe Cambridge.

“The property’s desirable location, coupled with its associated amenities, makes it an appealing investment for our partnership.”

Chantrey House has residential units and five commercial spaces.

The purchase of this property was completed through a partnership with Residential Land.

Bruce Ritchie, founder of Residential Land, said:

“Peony Court and Chantrey House represent exactly the kind of properties the partnership is looking to purchase, particularly since each has an existing income stream as well as long-term rental improvement and refurbishment opportunities. ”

Ivanhoe Cambridge first entered the London residential market in early 2012 with the purchase of four assets totalling CAD150m.

 

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