Ivanhoe Cambridge — the real estate arm of the C$35 billion Caisse de Depot et Placement du Quebec — is snapping up multifamily real estate at a fast clip, and it's not done yet.
This month, Ivanhoe Cambridge bought into the $1.5 billion Equity Residential portfolio recently taken private by Goldman, Sachs & Co. and real estate manager Greystar Real Estate Partners.
Executives of Montreal-based Ivanhoe Cambridge believe the time is right to increase multifamily investments in the United States and the United Kingdom.
“Ivanhoe Cambridge believes in increasing its investment in the multiresidential segment in key markets and the U.S. is one in which we want to register growth this year,” said Sebastien Theberge, senior director, public affairs and communications at Ivanhoe Cambridge in an e-mail. “The economy is picking up and social-demographic trends are favorable, two key factors that will support the sector in the near future.”
The Equity Residential deal includes a portfolio of 27 high-quality multiresidential properties in high-performing submarkets in the U.S. Most properties in the portfolio were built in the 1990s and have strong existing cash flows. The partners will embark on a multiyear maintenance and renovation program for the properties. Mr. Theberge declined to provide terms of the transaction.
All together, Ivanhoe Cambridge has investments in 56 multiresidential properties located in major urban centers in Canada, the U.S. and the U.K.
“In the U.S., we are focusing on markets with strong, diversified employment bases, primarily New York, Boston, Washington, Los Angeles and San Francisco,” Mr. Theberge said in his e-mail. “In Europe, the focus is on Paris and London. Our London investments are through an alliance with Residential Land.”
In February 2012, Ivanhoe Cambridge — in partnership with Residential Land and Apollo Global Real Estate — bought four multiresidential buildings in prime central London. In December, Ivanhoe Cambridge acquired majority ownership interests in two multiresidential complexes in prime central London — one in South Kensington and the other in Belgravia.
Ivanhoe Cambridge's partnership gives it participation in any acquisition opportunity the partners come across that matches Ivanhoe Cambridge's investment criteria.