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CPPIB, Greystar form single-family rental JV, invest $840m

Canada Pension Plan Investment Board and Greystar Real Estate Partners have formed a new joint venture to develop and acquire single-family rental communities in the US.

Canada Pension Plan Investment Board and Greystar Real Estate Partners have formed a new joint venture to develop and acquire single-family rental communities in the US. CPPIB and Greystar have together allocated about $840 million in equity to the joint venture. CPPIB will own a 95 percent stake and Greystar will own the balance.

PRESS RELEASE

Toronto, CANADA (December 8, 2021) – Canada Pension Plan Investment Board (CPP Investments) and Greystar Real Estate Partners, LLC (Greystar), a global leader in the investment, development, and management of high-quality rental housing properties, have formed a new joint venture to develop and acquire purpose-built single-family rental communities in the United States.

CPP Investments and Greystar have allocated approximately US$840 million in equity to the joint venture. CPP Investments will own a 95% stake and Greystar will own the remaining 5%.

“We’re pleased to make our first investment in the sought-after single-family rental sector alongside our existing partner, Greystar,” said Peter Ballon, Managing Director, Global Head of Real Estate, CPP Investments. “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.”

The joint venture will develop and acquire professionally managed rental communities consisting of detached or semi-detached homes and townhomes with private garages and backyards. Each community will have onsite leasing and maintenance as well as other communal amenities in line with Greystar’s world class product that focuses on maximizing resident experience. The partnership will target development areas that are near employment hubs, transit and retail centers across the sunbelt, mountain west and west coast regions of the United States. Greystar will operate and manage the portfolio on behalf of the joint venture.

“At Greystar, we pride ourselves on our ability to drive innovation across the rental housing industry, while increasing supply at the same time,” said Bob Faith, Founder, Chairman, and CEO of Greystar. “This new wave of purpose-built, accessible rental communities is giving new options to renters who are seeking more space in a safe and professionally managed, quality home. We are expanding the rental experience by providing families with the option of single-family homes while maintaining the same exceptional experience and sense of community of multifamily rental homes.”

The joint venture extends CPP Investments’ partnership with Greystar following the announcement of multifamily development opportunities in target markets in the US earlier this year and a purpose-built multifamily rental venture focused on Sao Paulo with Cyrela Brazil Realty in 2019. In July 2021 the two partners launched a life sciences venture focused on the US, which will provide purpose-built lab and office space.

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2021, the Fund totalled $541.5 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.

About Greystar
Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and management of rental housing properties globally. Headquartered in Charleston, South Carolina, Greystar manages and operates approximately $230 billion of real estate in 215 markets globally including offices throughout North America, Europe, South America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, manages more than 754,000 units/beds, and has a robust institutional investment management platform with approximately $49.9 billion of assets under management, including $22.6 billion of development assets. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com.