£135m commitment aims to build on ‘history, heritage and global reputation’
A partnership between two global investment management organisations is set to take on and develop Silverstone Park.
CPP Investments, the Canada Pension Plan Investment Board, is to commit £135 million to the joint venture with Federated Hermes, whose wholly owned subsidiary MEPC already acts as development and asset manager for the park.
CPP Investments will hold a 50 per cent interest, with further investment planned to support the park’s future development. It already has 676,000 sq ft of premises on the park which is home to more than 80 high-tech engineering companies working in automotive, engineering, defence, manufacturing and electronics.
Through MEPC, Federated Hermes has established Silverstone Park over the past eight years on behalf of the BT Pension Scheme.
“This is a noteworthy extension of our highly successful partnership with CPP Investments,” said Federated Hermes’ chief executive, real estate Chris Taylor. “Our vision for Silverstone Park is to build on the history, heritage and global reputation of the Silverstone Circuit, creating a home for engineering, innovation and business development beyond the world of motor sport and we are delighted to share these aspirations with our joint venture partner.”
Silverstone Park is located in the Oxford-Cambridge Innovation Arc growth corridor and is seen as a global destination for innovation, business development and engineering. It has also developed ties and collaboration schemes with nearby schools and colleges, including STEM and innovation programmes.
CPP Investments and Federated Hermes, as investment manager of BTPS’s UK property investments, have previously coinvested on the development of other MEPC-managed assets in Paradise Birmingham, Wellington Place in Leeds and Milton Park at Abingdon in Oxfordshire.
“We believe our investment in Silverstone Park will support the scheme’s next phase of growth, further diversify our real estate portfolio and deliver attractive long-term, risk adjusted returns for CPP contributors and beneficiaries,” said Tom Jackson, CPP Investments’ managing director, head of real estate UK.