Wednesday, June 12, 2024

Canada Pension Plan expands real estate investment

CPP Investments, which manages more than $500bn, has deepened its real estate commitments with US specialist Harbor Group International.

Its Multifamily Credit Fund has secured about $1.6bn in new capital commitments, led by a $585m ticket from CPPIB Credit Investments III, part of the the Canada Pension Plan Investment Board.

It is CPP Investments’ third investment with HGI since 2019, the firm announced this week.

“We continue to view multifamily credit investments as resilient assets that are well positioned to drive strong returns for the CPP fund over the long term,” said Geoffrey Souter, managing director and head of real assets credit at CPP Investments.

“HGI is a market leader in this space and we are pleased to extend our relationship with them through this new investment.”

The fund invests in US multi-family credit opportunities, including senior mortgage loans, Freddie Mac K-series bonds, preferred equity and mezzanine debt investments, and investments in securitised multifamily mortgage products.

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