PSP Investments, one of Canada’s largest pension investment managers, and Pretium, an alternative investment management firm, have established a joint venture to invest in single-family rentals (SFR) across major markets in the southeastern and southwestern United States.
The joint venture, represents the first partnership between the two firms, will initially invest $700 million into single-family rentals.
Pretium said it is currently the second-largest owner and operator of SFR properties in the United States.
“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,” said Donald Mullen, Founder and Chief Executive Officer of Pretium.
“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,” he added.
“Pretium has a proven track record of generating robust, uncorrelated returns by applying its specialized, resident-centric and scalable approach to its large and growing portfolio of homes,” said Carole Guérin, Managing Director, Real Estate, PSP Investments. “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.”