CPP Investments leads Harbor Group’s $1.6bn fundraise for debt fund

CPP Investments has participated in a $1.6bn (€1.5bn) fundraising by Harbor Group International (HGI) for a US multifamily real estate debt fund.

Real estate investment company HGI said the Canadian investor’s CPPIB Credit Investments III contributed $585m to the Multifamily Credit Fund’s total capital commitments. 

Multifamily Credit Fund seeks to invest in US multifamily credit opportunities including senior mortgage loans, Freddie Mac K-series bonds, preferred equity and mezzanine debt investments, and investments in securitised multifamily mortgage products, HGI said.

Richard Litton, HGI’s president, said: “We are thrilled to continue our relationship with CPP Investments through this partnership as our lead investor for the Multifamily Credit Fund.

“The fund is uniquely positioned to build on HGI’s track record both as an investor in multifamily credit strategies and as a multifamily operator with a large national portfolio. We also expect to benefit from the current rate environment as we seek to achieve positive returns for our investors.”

The latest commitment is CPP Investments’ third investment with HGI since 2019. In 2020, CPP Investments – as the lead investor – placed $110m into HGI’s multifamily whole loan platform following a $180m commitment to HGI’s Freddie Mac Supplemental Loan programme the year before.

Geoffrey Souter, managing director and head of real assets credit at CPP Investments, said: “We continue to view multifamily credit investments as resilient assets that are well positioned to drive strong returns for the CPP Fund over the long term.

“HGI is a market leader in this space and we are pleased to extend our relationship with them through this new investment.”

To read the latest edition of the latest IPE Real Assets magazine click here.