Canada Pension Plan Investment Board, Toronto, and real estate company Greystar Real Estate Partners have formed a joint venture to pursue U.S.-based multifamily real estate development opportunities.
The C$456.7 billion ($359.7 billion) pension fund invested $350 million for a 90% stake in the joint venture, while Greystar has invested $39 million for the remaining stake, CPPIB spokesman Steve McCool confirmed.
Greystar, which has $37 billion in assets under management, will operate and manage the joint venture, according to the Jan. 7 news release.
"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, CPPIB investments' managing director, head of real estate Americas, in the news release. "With Greystar's strong national presence and local expertise, our partnership will build a resilient portfolio of well-located assets."
This is the board's second joint venture with Greystar. In September, they announced a joint venture along with Cyrela Brazil Realty to develop multifamily rental housing in Sao Paulo, Brazil.