Canada Pension Plan Investment Board (CPP Investments) and Greystar Real Estate Partners teamed up to develop and acquire single-family rental communities in the US.
CPP Investments and Greystar have allocated $840m (€726m) in equity to the newly created joint venture.
CPP Investments will own a 95% stake in the venture and Greystar will own the remaining 5%, the companies said in a joint statement.
The joint venture will develop and acquire professionally managed rental communities consisting of detached or semi-detached homes and townhomes with private garages and backyards.
The joint venture extends CPP Investments’ partnership with Greystar following the announcement of multifamily development opportunities in target markets in the US earlier this year and a purpose-built multifamily rental venture focused on Sao Paulo with Cyrela Brazil Realty in 2019.
Back in July, the two companies launched a life sciences venture focused on the US, which will provide purpose-built lab and office space.
Peter Ballon, managing director, global head of real estate at CPP Investments, said: “We’re pleased to make our first investment in the sought-after single-family rental sector alongside our existing partner, Greystar.
“Purpose-built single-family rental properties are becoming more desirable for a large and growing segment of renters in the US, particularly families or other renters looking for more space without sacrificing access to urban centres.”
Bob Faith, founder, chairman, and CEO of Greystar Real Estate Partners, said: “We are expanding the rental experience by providing families with the option of single-family homes while maintaining the same exceptional experience and sense of community of multifamily rental homes.”
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