Canada's national pension fund struck its first partnership to build and rent out single-family homes in the U.S., joining a rush to capitalize on a housing shortage.
Canada Pension Plan Investment Board will join with Greystar Real Estate Partners, the largest property manager in the U.S., to build and acquire communities of single-family rental properties there, according to a statement issued Wednesday.
CPPIB will own 95% of the $840 million joint venture, while Greystar will own 5%.
The surging price of homeownership in the U.S. has forced many families to consider renting single-family houses instead of buying, helping turn such properties into one of the hottest asset classes over the course of the COVID-19 pandemic. More than $30 billion has been committed to rental houses since 2020, according to deal announcements compiled by John Burns Real Estate Consulting.
"This reflects the fact that there is large pent-up demand for housing in general," said Peter Ballon, global head of real estate at CPPIB. "Renters who choose to rent would prefer a variety of types of housing options."
CPPIB's latest partnership with Greystar follows on a $389 million venture they announced in January to develop apartment buildings in the U.S.
CPPIB oversees management of the C$541.5 billion ($423.4 billion) Canada Pension Plan.
