The Canada Pension Plan Investment Board is entering a joint venture to develop, acquire and manage rental communities in the U.S.
The agreement, between the CPPIB and Greystar Real Estate Partners, involves a combined capital commitment of US$840 million. Profits from the joint venture will be unevenly split, with the CPPIB entitled to a 95 per cent share.
The joint venture will manage rental communities consisting of detached, semi-detached homes and townhomes with private garages and backyards. It will target development areas that are near employment hubs, transit and retail centres in the western and southwestern U.S.
In a press release, Peter Ballon, managing director and global head of real estate at the CPPIB, said it was the first time the investment organization has made a capital allocation to the single-family rental sector. “Purpose-built single-family rental properties are becoming more desirable for a large and growing segment of renters in the U.S., particularly families or other renters looking for more space without sacrificing access to urban centres.”
In other investment news, the Caisse de dépôt et placement du Québec is acquiring a minority stake in a supply chain compliance solutions provider.
The investment in QIMA, which provides supply chain testing, inspection and certification services, is part of a strategic growth plan to acquire and expand the Caisse’s assets in new geographies and sectors.
In a press release, Martin Laguerre, executive vice-president and head of private equity and capital solutions at the Caisse, described QIMA, which has more than 15,000 client businesses located in 120 countries, as having a technological advantage over its competitors. “QIMA has enjoyed significant growth thanks to its superior level of digitalization and ability to successfully integrate numerous acquisitions over the last few years while also continuing to serve a growing base of blue-chip clients.”