The Canada Pension Plan Investment Board is investing £500 million in a new U.K.-based single-family rental housing joint venture.
The initial allocation will give the investment organization a 90 per cent stake in the venture, while its partner, global real estate investment company Kennedy Wilson Holdings Inc., will hold a 10 per cent ownership stake by investing £56 million.
In a press release, Tom Jackson, head of European real estate at the CPPIB, said private capital plays an important role in addressing the current undersupply of high-quality rental housing in the country. “Investing into the U.K. single-family housing sector aligns well with our broader real estate strategy, to undertake scalable investments into high quality assets with growing cash flows.
Read: AIMCo, CPPIB reinvesting in telecom network; CPPIB expanding share in U.K. mall
The CPPIB is also reinvesting US$100 million in U.S.-based energy service provider Redaptive. According to a press release, the investment will support growth projects at the firm and help improve its service offering due to a rapidly growing customer base and ecosystem of energy performance developers and contractors.
In a press release, Edwina Kelly, managing director and head of U.S. sustainable energies at the CPPIB, said the company has demonstrated strong execution in driving energy savings in a volatile market. “This investment in Redaptive aligns with our goal of promoting the smart, sustainable use of energy resources and supporting initiatives that promote the transition to a low-carbon economy.”
Read: CPPIB investing in energy service provider, BCI backing aerospace acquisition
In other news, the Ontario Municipal Employees’ Retirement System is closing an offering of Australian dollar term notes worth AU$750 million.
The notes, which carry a five-year maturity rate, are priced at a yield of 4.52 per cent. The offering, which represents the inaugural transaction by the OMERS using Australian currency, was led by central banks and official institutions (59 per cent), followed by asset managers (32 per cent), corporate investors (23 per cent) and bank treasuries and private banks (nine per cent).