Ivanhoe Cambridge partners on 27 properties in U.S. acquired for US$1.5B

MONTREAL - Ivanhoe Cambridge has announced it is partnering with the real estate arm of investment bank Goldman, Sachs along with Greystar Real Estate Partners and others on 27 apartment properties across the United States.

The properties were recently acquired by Goldman, Sachs and Greystar from Equity Residential in a transaction valued at US$1.5 billion.

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Ivanhoe Cambridge, the real estate subsidiary of the Caisse de depot et placement du Quebec, did not specify in its announcement how much money it is putting into the deal.

However, Ivanhoe said its "significant participation" aligns with the company's strategy of acquiring promising real estate investment opportunities in priority U.S. markets.

It said the income-producing portfolio of class A and class B apartment communities feature 8,010 units in markets "characterized by high barriers to entry as well as strong economic and job growth potential."

Most were built in the years 1990-2000 and are located in high-performing sub-markets of key U.S. cities and the partners have agreed to embark upon a multi-year maintenance and renovation investment program, it said.

"We believe we found in Greystar a highly skilled, respected operator and investment partner," said Sylvain Fortier, Ivanhoe Cambridge executive vice-president, residential and hotels.

"The investment and operational expertise of the partnership will serve to strengthen the value of the assets and generate attractive returns for our investors."

Greystar, with headquarters Charleston, S.C., is the largest operator of apartments in the United States, managing about 200,000 units in more than 100 markets.

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