Canada Pension Plan Investment Board (CPPIB) is expanding its relationship with Longfor Group Holdings Limited and entered into Chinese rental housing market.
CPPIB and Longfor have launched a new investment cooperation that will focus on rental housing programs in China with an initial targeted investment of approximately US $817m. The programs will invest in China across Tier I and core Tier II cities via developments, acquisition and master-lease of commercial assets to be converted into rental housing.
CPPIB and Longfor Group launched their collaboration in 2014 and have built a portfolio of Paradise Walk branded retail assets beginning with their first investment in a mixed-use real estate project in Suzhou and extended that co-operation with further investments in Chongqing, Shanghai and Chengdu.
CPPIB head of real estate investments for Asia Jimmy Phua said this will further diversify the board’s investments in the market.
“Demand for modern, quality rental housing amongst young professionals and new graduates in China is growing rapidly, and through this collaboration, we are pleased to have the opportunity to participate in this fast-growing sector of Chinese real estate,” he said.
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