The Canada Pension Plan Investment Board is entering a joint venture to develop multifamily residential communities in high-growth metropolitan areas of the U.S.
The institutional investor has allocated US$979 million for a 96 per cent share in the venture. Its partner, LMC, a real estate management business and wholly owned subsidiary of Lennar Corp., will be responsible for the development and management of the venture’s assets.
The joint venture is designed to capitalize on the growing demand for multifamily housing in growing cities throughout the U.S., focusing on developments in urban and suburban communities. Construction will begin in five seed asset properties, located in Colorado, Florida and Massachusetts. In total, 1,371 apartments are expected to be constructed in the first phase.
According to a press release, Peter Ballon, managing director and global head of real estate at the CPPIB, said the deal presented the CPPIB with a compelling value proposition. “We are pleased to work alongside a best-in-class partner like LMC to continue to build our portfolio of multifamily investments, which we believe will deliver steady, long-term returns for the [CPPIB].”
The institutional investor is also selling its shares in an energy provider to a joint venture backed by the Ontario Teachers’ Pension Plan.
The joint venture, which includes both the Ontario Teachers’ and the Macquarie Group Ltd., is acquiring a 31.6 per cent stake in Puget Holdings, an energy company based in Washington. Its primary subsidiary, Puget Sound Energy, provides electricity to 1.2 million customers and natural gas to 900,000.
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The Ontario Teachers’ is also reinvesting in a Singapore-based data centre operator.
The deal was reached during a US$500 million funding round for the Princeton Digital Group. The company operates 20 data centres in five Asian countries: China, India, Indonesia, Japan and Singapore. Its clientele includes internet and cloud companies and financial institutions. The funds raised during the round will be used to expand the company’s presence in existing markets and to enter into new regions.
According to a press release, Kevin Kerr, managing director and head of Americas for infrastructure and natural resources at the Ontario Teachers’, said the deal is part of an a strategy to expand its high-quality core infrastructure assets. “We believe PSE will play a key role in decarbonizing Washington State’s power generation in the coming years, which is consistent with our own efforts to achieve net-zero greenhouse gas emissions by 2050.”
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In other news, the British Columbia Investment Management Corp. is selling a portion of its stake in the world’s largest contract beverage manufacturer to an investment firm.
Following the deal, KKR will secure a majority stake in the Refresco Group, with its shares purchased from the BCI and from the company’s other existing investors. Following the transaction, the BCI will maintain a significant minority stake in Refresco.
Founded in 1999, the company is a global independent beverage solutions provider for retailers and branded beverage companies in Europe and North America. It manages a network of bottling, warehousing, logistics and other operational assets out of 70 manufacturing sites.