The Canada Pension Plan Investment Board (CPPIB) has joined with Cortland Partners and GIC in announcing the formation of a joint venture to acquire and renovate 8,000 to 10,000 multifamily units in the United States.
The venture involves generating a targeted equity sum of US$550 million to obtain and renovate the Class B units. The board will have a 45 per cent interest in the venture. The properties are in Colorado, Texas, and North Carolina.
“The U.S. multifamily real estate sector continues to offer compelling risk-adjusted returns for the CPP Fund, driven by favourable population growth and employment trends,” Hilary Spann, Managing Director, Head of Americas, Real Estate Investments, CPPIB, is quoted saying.
“By focusing on Class B asset opportunities, this joint venture enables us to add diversification to our U.S. multifamily portfolio, which is concentrated in prime urban locations. We are pleased to form this new joint venture with Cortland Partners, a vertically integrated operator and one of the largest multifamily owner-operators in the U.S., and GIC, a longstanding partner we know well.”
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