Canadian pension investment manager Public Sector Pension Investment Board (PSP Investments) has teamed up with Pretium to initially invest $700m into single-family US rental properties.

The new joint venture will target assets across major markets in the southeastern and southwestern US.

Alternative investment manager Pretium is currently the second-largest owner and operator of single-family rentals (SFR) properties in the US.

Donald Mullen, founder and CEO of Pretium, said: “We are pleased to have the opportunity to establish this joint venture with PSP Investments, which demonstrates the increasing level of interest in SFR from leading institutions as the asset class has delivered strong performance and is poised to benefit from meaningful secular tailwinds.

“It is a privilege to partner with PSP Investments, a globally recognized leader in pension investment management, and we look forward to creating value on behalf of all constituents by leveraging our platform and expertise as a pioneer in this asset class.”

Carole Guérin, managing director, real estate, PSP Investments, said: “Pretium has a proven track record of generating robust, uncorrelated returns by applying its specialised, resident-centric and scalable approach to its large and growing portfolio of homes.”

“We can think of no better partner to expand our presence in this increasingly attractive asset class and look forward to working with Pretium to deliver compelling results for our beneficiaries.”

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