Canada Pension Plan Investment Board (CPP Investments) and Greystar Real Estate Partners, LLC (Greystar) have formed a new joint venture to develop multifamily properties in target markets in the United States.
CPP Investments has allocated US$350 million in equity to the joint venture for a 90% stake, and Greystar has allocated US$39 million for the remaining 10%.
The joint venture will develop Class A, mid- and high-rise multifamily properties in urban and inner-ring suburban communities across major U.S. markets, including core coastal markets and other regions with strong population and job growth.
Greystar will manage and operate the portfolio on behalf of the joint venture.
”There is a significant undersupply of rental housing in the U.S.”
“There is a significant undersupply of rental housing in the U.S. 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,” said Hilary Spann, Managing Director, Head of Real Estate Americas, CPP Investments. “With Greystar’s strong national presence and local expertise, our partnership will build a resilient portfolio of well-located assets.”
“We are pleased to launch another joint venture alongside our trusted partner, CPP Investments. 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,” said Bill Maddux, Executive Managing Director, Development and Construction, Greystar. “With CPP Investments’ global scale and perspective and Greystar’s dominant market presence in the United States, we are poised to build a world-class resilient portfolio of premier assets for our residents to enjoy a truly unique living experience.”