The Canada Pension Plan Investment Board (CPPIB) has acquired a 24.5% stake in U.K.-based video game producer Keywords Studios for about US$515 million.

Toronto-based CPPIB purchased a minority interest while teaming up with Swedish firm EQT and Singapore state-owned firm Temasek on the acquisition of all of Keywords outstanding shares.

The deal, originally announced in July, has closed. The purchase has widespread commercial real estate implications. London-headquartered Keywords operates locations in Canada, the U.S., South America and Europe.

EQT acquired a majority 51% interest, while Temesek also bought a 24.5% stake.

“Keywords Studios presents an attractive opportunity for [CPPIB] to invest in an industry-leading global operator within a high-growth sector,” said Caitlin Gubbels, senior managing director and head of private equity at CPPIB.

“The business supports the global video gaming ecosystem through its extensive footprint and diversified revenue streams. We look forward to strengthening Keywords Studios’ market leadership and driving value creation alongside the management team and our longstanding partners, EQT and Temasek.”

According to a July EQT news release, the transaction valued Keywords at  £2.1 billion on a fully diluted basis, implying an enterprise value of £2.2 billion. Following the acquisition, Keywords has been delisted from the London Stock Exchange’s AIM market as the company goes private.

Founded in 2013, Keywords has established itself as a trusted global partner to leading video game and entertainment companies.

The Canada Pension Plan Investment Board (CPPIB) and global real estate investment firm Kennedy Wilson (KW) have announced a partnership to launch a single-family rental housing joint-venture in the United Kingdom.

Toronto-based CPPIB is set to commit an initial £500 million, with Beverly Hills, Calif.-based KW contributing £56 million to the venture, which aims to develop approximately £1 billion in assets, including leverage, with potential for further capital expansion depending on market conditions. CPPIB will hold a 90% stake in the venture, while KW will maintain a 10% ownership.

The new joint-venture plans to partner with homebuilders to develop energy-efficient, new-build homes in well-connected and economically robust communities across the U.K., offering access to amenities, employment, and education. The venture is seeding its investment program with properties from developments KW sourced, including properties under construction by Barratt Redrow in Norwich, England, where KW is already leasing units, and Miller Homes in Stevenage, England, with completion expected by the second quarter of 2025. KW’s active development pipeline currently comprises about £360 million in investment opportunities across 1,100 units, with a potential to scale up to 4,000 units as full capital is deployed.

“Private capital can play an important role in addressing the current undersupply of high-quality rental housing in the U.K., particularly where it is professionally managed to provide a great customer experience,” said Tom Jackson, head of European real estate at CPPIB. “Investing into the U.K. single-family housing sector aligns well with our broader real estate strategy, to undertake scalable investments into high quality assets with growing cash flows. We look forward to launching the JV alongside Kennedy Wilson to deliver strong returns for 22 million contributors and beneficiaries of the CPP fund.”

KW will manage the venture and earn customary fees by leveraging its expertise as a long-term rental housing operator. The company brings a vertically integrated investment and asset management team, backed by systems to support operations, reporting, and management of approximately 60,000 rental units across the United States, U.K., and Ireland.

“Residential has long been a crucial part of Kennedy Wilson’s investment strategy, and our JV with CPP Investments, a leading global institutional investor, will propel our efforts to deliver much needed rental homes for local families,” said Mike Pegler, president of Kennedy Wilson Europe.

“The structural challenges facing institutionally managed rental housing in the U.K. [provide] a clear investment rationale to enter the market and leverage our deep experience in the sector. We are actively seeking opportunities to grow our portfolio, which offers substantial scalability potential in the U.K., driving consistent risk-adjusted returns in this high-conviction subsector.”

The joint initiative underscores CPPIB and KW’s commitment to addressing rental- housing shortages in the U.K. and aims to establish a scalable portfolio that aligns with CPPIB’s focus on high-quality assets with strong growth potential, said CPPIB.

Photo: CNW Group/CPPIB