£1 billion joint venture acquires London Build to Rent asset for £100 million

Two real estate firms have acquired a 294-apartment residential rental complex in east London from Kennedy Wilson for approximately £100 million as part of their PRS joint venture programme.

Realstar, a real estate investor and manager, and global real estate company QuadReal Property Group have added to their growing London portfolio by buying up the asset in the east of the city.

The deal represents Realstar’s fourteenth PRS investment in the UK and marks the fourth asset in the £1 billion London rental joint venture between the Canadian-headquartered firm and QuadReal.

Described as a ‘landmark development within Ilford town centre’, Pioneer Point includes 294 residential units within two towers. There is 35,000 sq ft of fully leased commercial space and 10,000 sq ft of extensive resident amenities. 

In common with other Build to Rent projects, the development offers residents a dedicated on-site concierge and property management suite, as well as resident lounges, meeting spaces and work pods. Residents can also benefit from a quiet lounge, entertainment spaces with open-plan kitchen and dining rooms, a kids’ zone, games room and cinema.

Pioneer Point is just a stone’s throw from Ilford Station, which offers fast connections into London. These will be further enhanced once Crossrail (the Elizabeth Line) becomes fully operational at some point next year. Ilford is a key transport hub on its eastern section, linking Essex with East and Central London.

“Whether for a night, a year or a decade, Realstar strives to be the most trusted owner and operator of the places our customers call home,” Ryan Prince, managing partner of Realstar, said. “We believe that properly managed, large-scale residential rental assets are a critical element to help solve London’s housing needs and Pioneer Point represents a great opportunity to help residents experience great amenities in a convenient location.” 

He added: “Furthermore, we’re incredibly excited to continue our 25+ year investment relationship with QuadReal. Pioneer Point is a unique investment as the core strategy for the partnership is to acquire and develop new-build rental properties as we’ve done to date in Wembley, Southall and Colindale. The joint venture is already well underway, with over £400 million of assets secured and we look forward to finding additional opportunities with a view to reaching over £1 billion of assets over the upcoming year or two.”

Jay Kwan, managing director of QuadReal, also commented: “The Realstar and QuadReal teams share the benefits of experience and a long-standing relationship with roots in Canada from 1993 and in the UK since 2008. The teams share a commitment to offering the best accommodation to their customers and a conviction about the enduring strength of the UK rental housing market, and QuadReal is excited to continue working with a high-quality partner in Realstar.”