Singapore GIC, Canada Pension Board and Cortland Partners launch $550m JV

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Cortland Partners, Canada Pension Plan Investment Board (CPPIB) and Singapore’s sovereign wealth fund GIC have established a joint venture (JV) with a targeted equity amount of $550 million to acquire and renovate 8,000 to 10,000 Class B multi-family units in the U.S.

CPPIB and GIC will each own a 45 per cent stake in the JV with Cortland Partners holding the remaining 10 per cent interest in the JV.

Class B properties refers to well-maintained older assets with opportunities for improvements to the buildings for the benefit of tenants, ongoing maintenance and long-term appreciation.

“The U.S. multi-family real estate sector continues to offer compelling risk-adjusted returns for the CPP Fund, driven by favourable population growth and employment trends,” said Hilary Spann, Managing Director, Head of Americas, Real Estate Investments, CPPIB.

“By focusing on Class B asset opportunities, this joint venture enables us to add diversification to our U.S. multi-family portfolio, which is concentrated in prime urban locations,” she adds.

The JV has initially acquired three value-adds, Class B garden-style communities located in high-growth markets of major U.S. metropolitan areas. These are Lakecrest at Gateway Park, a 440-unit rental complex located in Denver, Colorado; Aurum Falls River, a 284-unit rental complex in Raleigh, North Carolina; and Waterstone Apartments, a 308-unit rental complex in Austin, Texas.

GIC, which reportedly has between $359 billion and $398 billion in assets under management (AUM) as at June 2017, has a portfolio which is heavily weighted to the US; it accounts for  34 per cent of its portfolio, with real estate assets contributing 7 per cent of its overall value.

The JV will also pursue additional opportunities to acquire multifamily properties that are candidates for value-add strategies, primarily in major markets throughout the Southern and Southeastern US.

In a statement, Lee Kok Sun, Chief Investment Officer, GIC Real Estate, said, “This venture will pursue a value-add strategy to capture the strong demand and resilient return profile of the U.S. multifamily sector. We look forward to growing this venture with Cortland, an experienced multifamily firm with a sizeable presence in the Sun Belt target markets, and CPPIB, a partner who shares our long-term investment philosophy.”

Also Read:

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GIC, Goldman emerge as largest LPs in restructured Vector Capital funds

India: GIC-backed Bandhan Bank files DRHP, eyes IPO in March-April

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.