The C$400.6 billion ($300.2 billion) Canada Pension Plan Investment Board, Toronto, committed $180 million to real estate investment firm Harbor Group International to invest in Freddie Mac's Supplemental Loan Program, a CPPIB spokesman confirmed. The commitment was made through CPPIB subsidiary CPPIB Credit Investments.
CPPIB, along with HGI affiliates and HGI third-party investors, will invest an estimated $250 million into the class B tranche of future Freddie Mac supplemental loan securitizations, known as the KJ series. HGI has been given exclusive rights to purchase the class B tranche.
"Freddie Mac offers supplemental loans to apartment property owners that have obtained a first mortgage or senior loan from Freddie," explained HGI president Richard Litton in an email. "Freddie Mac aggregates its supplemental loans and securitizes the loan pools by selling off different tranches of bonds to outside investors."