The Caisse de dépôt et placement du Québec is entering a strategic partnership to develop affordable housing in France.

The investment organization’s real estate arm, Ivanhoé Cambridge, has signed a partnership agreement with CDC Habitat, a subsidiary of the French sovereign investment fund Caisse des dépôts et consignations. The partnership will develop houses in France’s major cities, border regions and on its Mediterranean coast.

The partnership, which has an investment capacity of €500 million ($660 million), will also repurpose some older industrial and commercial buildings to create new residences, according to a press release.

Read: Ivanhoé Cambridge buys mixed-use Paris real estate for redevelopment

“Our strategy is to increase our exposure to the residential sector in Europe over the next few years,” said Karim Habra, head of Europe at Ivanhoé Cambridge, in the release. “This asset class is attractive because of its resilience and our development in this sector aims to meet the challenge of affordability in a context of housing deficit in France and Europe,

In other investment news, a U.K. industrial site co-owned by the Healthcare of Ontario Pension Plan is receiving a £300 million upgrade.

The multi-modal logistics hub iPort Doncaster will see construction begin on five new warehouse buildings. Upon completion of the development in June 2024, the site’s usable warehouse space will grow from 55 hectares to 72 hectares.

The move is part of a strategy to meet the U.K.’s rising demand for warehouse facilities in strategic locations, according to a press release. Three companies — Euro Pool Systems U.K. Ltd., Maritime Transport Ltd. and Woodland Group — have already signed leases on the new facilities.

Read: Ivanhoé Cambridge invests in German office real estate vehicle