The Public Sector Pension Investment Board has entered into a joint venture to grow its student accommodation portfolio in London, England.

The agreement, with global rental housing company Greystar Real Estate Partners and global real estate investment and asset manager Allianz Real Estate, aims to double the size of the portfolio in five years. Specifically, Allianz is acquiring an interest in the Chapter portfolio alongside PSP Investments’ and Greystar’s current stakes.

Read: Global investors increasing allocations to infrastructure, real estate: survey

“We are very excited to welcome Allianz, an internationally renowned and respected real estate investor, into our established and successful partnership with Greystar,” said Stéphane Jalbert, managing director for Europe and Asia-Pacific, real estate at PSP Investments, in a press release. “Chapter is now a recognized, income-generating business and this new partnership will strengthen and grow this highly efficient purpose-built student accommodation platform.”

Bob Faith, founder and chief executive officer of Greystar, noted that London’s housing market is under great pressure with student accommodation availability highly constrained. “This partnership marks an important step in the rapidly growing institutional-grade rental housing and student accommodation investment market in the U.K.,” said Faith. “We are excited to partner with PSP and Allianz on this exciting endeavour.

“We have a hugely ambitious target to scale the business to secure major operational efficiencies. This joint venture means we’re now in a strong position with tremendous financial resources to realize Chapter’s potential.”

Read: Canadian pension funds increasingly using co-investments to diversity real estate holdings

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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