Canada Pension Plan Investment Board (CPP Investments) and LMC have formed a billion-dollar partnership to develop multifamily residential communities in the US.

CPP Investments and LMC have allocated $979m (€846m) in equity to the joint venture which will be 96% owned by CPP Investments alongside Lennar Corporation’s subsidiary owning the remaining 4%.

The joint venture – which has been launched with five seed assets – will focus on urban and suburban communities across major US markets exhibiting strong population and job growth.

The seeds assets, located in Boston, Miami and Denver, total 1,371 apartment homes.

Peter Ballon, managing director, global head of real estate at CPP Investments, said: “This investment is an excellent opportunity to meet the strong demand for high-quality multifamily housing.

“We are pleased to work alongside a best-in-class partner like LMC to continue to build our portfolio of multifamily investments, which we believe will deliver steady, long-term returns for the CPP Fund.”

Todd Farrell, president of LMC, said: “This joint venture specifically targets high-growth markets where the housing supply hasn’t kept pace with renter demand, and we are proud to be part of the solution.

“Our partnership with CPP Investments enables us to deliver on our mission to create extraordinary communities where people can live remarkably. We look forward to delivering on that vision with these five initial assets, as well as all future endeavours with CPP Investments.”

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