Regal Homes teams up with global investment giant to spend a ‘significant amount’ in London

New JV looking "to deploy a significant amount of capital to purchase strategic sites across London"

One of the world’s biggest investment firms, KKR, has thrown its considerable financial heft behind privately-owned London residential property developer Regal Homes.

KKR and Regal have “entered into an exclusive strategic joint venture relationship to invest together in London-based residential-led mixed use schemes”.  The JV is looking “to deploy a significant amount of capital to purchase strategic sites across London”, with a focus on schemes delivering between 100 and 500 homes.

The backing is part of KKR’s $739m fund (announced last year) which is focused on “opportunistic” real estate-related investments in Western Europe, and comes as another sign that London’s property market may be bottoming out…

KKR is the world’s biggest private equity firm by capital raised, with $129.6bn under management at the end of 2016, but it only entered the real estate arena in 2013. Since then, however, it has pumped an estimated $1.3bn into European property…

Regal Homes started life in 1998, and currently claims a pipeline of 1,000 homes across eight schemes, with an average sales price of around £850,000. Projects range from 118 apartments at King’s Cross Quarter, to a single very high-spec family home at 1 Winnington Close in Hampstead Garden Suburbs.

Jenny Hammarlund, Director of Real Estate at KKR: “KKR is excited about partnering with a best-in-class operator and management team to find opportunities in the residential sector in London. This strategy fits well with our investment focus on creating value in strong locations by partnering with experienced management teams, and we look forward to working with Regal Homes”.

Simon De Friend and Paul Eden, Co-Founders of Regal Homes: “Regal Homes is a natural partner for KKR in the London market. Both firms have a strong culture of innovation and excellence with a commitment to long term partnerships. The joint venture will provide significant opportunities for growth, returns and delivery and this additional funding stream will confirm Regal as one of London’s leading developers.  It is an exciting time for Regal Homes.”