Canada Pension Plan Investment Board (CPP Investments) and Greystar Real Estate Partners have formed a joint venture to develop multifamily real estate in the US.
CPP Investments has allocated US$350m (€281m) of equity for a 90% stake in the joint venture, and Greystar is investing US$39m for the remaining 10%.
Greystar will manage and operate the assets.
“There is a significant undersupply of rental housing in the US,” said Hilary Spann, managing director and head of real estate Americas at CPP Investments.
“Despite the global pandemic and short-term economic uncertainty, there continues to be an opportunity for long-term investors to develop high-quality multifamily properties in growth markets.
“With Greystar’s strong national presence and local expertise, our partnership will build a resilient portfolio of well-located assets.”
The joint venture is intended to develop class-A, mid and high-rise properties in urban and inner-ring suburban communities across major US markets, including core coastal markets and other regions with strong population and job growth.
Last year, Greystar joined an existing joint ventures set up by CPP Investments and Cyrela Brazil Realty to invest in Brazilian multifamily markets.
“We are pleased to launch another joint venture alongside our trusted partner, CPP Investments,” said Bill Maddux, executive managing director for development and construction at Greystar.
“At Greystar, we remain confident in the resilience of the rental housing industry despite the challenges and uncertainty of the long-term effects of the global pandemic.
“Quality, purpose-built, professionally-managed housing remains more essential than ever as housing supply dwindles and homeownership prices increase to record levels.
“With CPP Investments’ global scale and perspective and Greystar’s dominant market presence in the US, we are poised to build a world-class resilient portfolio of premier assets for our residents to enjoy a truly unique living experience.”