'If the opportunity exists': CPPIB open to investing in Canada’s rental market
BNN Bloomberg
Canada’s biggest pension fund is open to investing in the country’s rental market to help increase much-needed housing supply – “if the opportunity exists.”
Canada’s biggest pension fund is open to investing in the country’s rental market to help increase much-needed housing supply – “if the opportunity exists.”
In an interview, the head of CPP Investments’ real estate unit did not shut the door to the idea of pursuing investments in the domestic single-family rental market, much like the pension fund is doing in the United States.
On Wednesday, the Canada Pension Plan Investment Board announced a joint venture with Greystar Real Estate Partners LLC to build and acquire single-family rental communities in the U.S.
CPPIB, which had $541.5 billion in assets as of September, will own a 95 per cent stake in the venture and Greystar will own the remaining five per cent. A total of US$840 million in equity is being poured into the deal.
“Currently, we’re focused on the U.S. The U.S. is a larger market and so it does present larger opportunities. And as big investors, we do look for opportunities where we can invest at scale,” said Peter Ballon, global head of real estate for CPP Investments, in an interview Thursday.
“Having said that, single-family rentals are, as I mentioned earlier, an attractive opportunity for a lot of renters. And while we’re currently not focused on it, I can imagine that this segment could grow here in Canada.”
