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US investor and Canadian pension fund buy 788 suburban build-to-rent homes
A US property investor and Canadian pension fund have bought 788 suburban build-to-rent homes for £300m.
A US property investor and Canadian pension fund have bought 788 suburban build-to-rent homes for £300m #UKhousingKennedy Wilson and Canada Pension Plan Investment Board forward-funded the homes through 10 separate transactions with house builders.
The 10 development sites are located in Northampton, Nottingham, Hemel Hempstead, Watford, Wokingham, Bristol, Cheltenham and Didcot.
Homes have been acquired from existing joint venture partners including Barratt Redrow, Miller Homes and Wavensmere, alongside new partners Persimmon Homes, Taylor Wimpey and Kier Property/Vistry.
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The acquisitions bring Kennedy Wilson and CPP Investment’s UK housing platform to a total of 2,000 homes across 23 sites.
Over 300 homes have been built to date and are now either occupied or available for rent, with a further 800 homes expected to complete this year.
The latest deals are being financed by a previously announced £500m five-year debt facility from Goldman Sachs. Goldman Sachs will also provide a subscription facility to the partnership.
Since October 2024, the Kennedy Wilson and CPP Investments platform has secured £700m in commitments, including £500m in equity from CPP Investments.
Beverly Hills-headquartered Kennedy Wilson maintains a 10% stake and acts as the operator. The joint venture is currently progressing a pipeline of 1,000 units and aims to reach a 4,500-home portfolio.
Mike Pegler, president of Kennedy Wilson Europe, said: “These acquisitions deliver further growth for the joint venture in strategic locations in the UK where demand for rental housing is acute.
“We have established strong relationships with leading house builders and are already under offer on further units as we continue to scale the platform to our target of 4,500 homes.”
Tom Jackson, managing director and head of European real estate at CPP Investments, said: “Reaching 2,000 homes is a key milestone for our joint venture with Kennedy Wilson and our continued investment in this venture aligns with our real estate strategy, to undertake scalable investments in high-quality assets and deliver attractive risk-adjusted returns for the CPP fund.”
Investment volumes in suburban build-to-rent rose 56% year-on-year in 2025, according to CBRE, and activity in the subsector has continued into 2026.
Last month the UK’s largest local government pension scheme pool, Border to Coast Pensions Partnership, entered the suburban build-to-rent market in a £70m deal.
Meanwhile, in January US private equity giant Blackstone put its suburban build-to-rent business on sale for over £1bn.
Experts also told Inside Housing Living that US president Donald Trump’s proposal to ban institutional investors from buying suburban houses could “significantly boost investment” in the UK.
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