Ivanhoé Cambridge invests in London’s residential market

Ivanhoé Cambridge, a real estate subsidiary of the Caisse de dépôt et placement du Québec, has made its foray into London’s residential market with an investment of over CAD$150 million to acquire rental buildings in some of the city’s most sought-after neighbourhoods.

“In accordance with our strategic plan, we are acquiring multi-residential buildings in target urban centres. Following our recent purchases in Montreal and in San José (United States), London is a natural top choice,” said Daniel Fournier, Chairman of the Board and Chief Executive Officer of Ivanhoé Cambridge.

The transaction consists in the purchase of four multi-residential buildings, totaling 207 units, in the very heart of London, including some of the city’s most prestigious neighbourhoods, known as “Prime Central London”: South Kensington, Hyde Park, Bayswater and Marylebone.

By the same token, Ivanhoé Cambridge, through a real estate subsidiary, enters into a partnership with Residential Land, a London-based real estate firm, and Apollo Global Real Estate Management.

“This acquisition is strategically important, as it enables Ivanhoé Cambridge to penetrate an exceptional sector that is particularly difficult in terms of access,” stated Sylvain Fortier, President of Ivanhoé Cambridge/Residential. “It’s also an excellent opportunity to forge sustainable relationships in a most promising market with partners who have a proven track record.”

The parties’ agreement gives majority partner Ivanhoé Cambridge an opportunity to invest in the acquisition of other residential buildings exclusively with Residential Land and Apollo Global Real Estate Management, the global real estate investment group affiliated with Apollo Global Management. The Quebec-based company, through its subsidiary, will play a significant decision-making role in the partnership’s major orientations.

“Central London’s residential market presents some excellent business opportunities, and this partnership puts us in a position to seize them,” added Bruce Ritchie, CEO and founder of Residential Land, a private corporation with over 1,200 units of rental housing. Apollo Global Real Estate Management, which already has a presence in the London market, will invest directly in the partnership, and will play a strategic role in its management. Roger Orf, head of the Apollo Global Real Estate Management group in Europe, concluded: “We believe our seasoned executives are well-positioned to capitalize on opportunities in this fragmented market.”

ABOUT IVANHOÉ CAMBRIDGE

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$30 billion as at December 31, 2010.  Ivanhoé Cambridge is a real estate subsidiary of the Caisse de dépôt et placement du Québec (www.cdpq.com), one of Canada's leading institutional fund managers. Ivanhoé Cambridge’s residential portfolio invests in multi-residential rental buildings in large urban centres in Canada, the United States and Europe. For more information, visit www.ivanhoecambridge.com.

ABOUT RESIDENTIAL LAND

The Residential Land Group is a private corporation established by developer Bruce Ritchie in 1991, and it is now one of the largest private residential landlords in Prime Central London. Residential Land has conducted several hundred major transactions since its beginnings and now counts some 110 employees. For more information about Residential Land, please visit www.residentialland.com.

ABOUT APOLLO GLOBAL REAL ESTATE MANAGEMENT

Apollo (NYSE:APO) is a leading global alternative asset manager with offices in New York, Los Angeles, Houston, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong.  Apollo had assets under management of more than $65 billion 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 Apollo has considerable knowledge and resources.

Apollo Global Real Estate Management is a fully integrated operating division of Apollo 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’s investment professionals manage $7.9 billion in real estate assets as of September 30, 2011. For more information about Apollo, please visit www.agm.com.