Caisse’s real estate unit teams to build on U.S. residential presence

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The Caisse de dépôt et placement du Québec de depot's real estate arm is building on its U.S. residential presence by joining a group that has a portfolio of 27 apartment properties in key locations across the country.

Ivanhoé Cambridge said on Tuesday it's joining a partnership of the Real Estate Principal Investment Area of Goldman, Sachs & Co., Greystar Real Estate Partners and others in the portfolio of Class A and Class B apartment communities boasting 8,010 units.

The assets are in markets that consist of high barriers to entry as well as high potential for economic and job growth, says Ivanhoe Cambridge.

"Ivanhoé Cambridge's significant participation in this transaction aligns perfectly with our strategic plan to seize promising real estate investment opportunities and increase our critical mass with a well-distributed diversification in priority U.S. markets," Sylvain Fortier, executive vice-president, residential and hotels, said in a new release.

The partnership comes after Goldman, Sachs and Greystar's recent acquisition of the assets from Equity Residential in a deal valued at $1.5-billion (U.S.).

Ivanhoé Cambridge, one of the 10 biggest real estate companies in the world with a portfolio that includes malls and office buildings, has been pushing aggressively into residential real estate in the U.S. and Canada recently.

Last month, it said it is investing $1-billion (Canadian) to remake Vancouver's Oakridge Centre mall into a small city, including about 3,000 residential units in 13 towers.

Last October, the company announced a joint venture with Shea Properties to build a luxury apartment community of 648 units in the Silicon Valley city of San Jose, close to where Apple Inc.'s new head office campus is being built.

Ivanhoé Cambridge also has a strong presence in Manhattan.

The company did not provide financial details about the partnership with Goldman, Sachs and Greystar.