Lennar Finds Capital Source in CPP Investments for US Apartment Developments
Posted on 02/22/2022
Canada Pension Plan Investment Board (CPP Investments) and LMC, a wholly-owned subsidiary of Lennar Corporation (NYSE: LEN and LEN.B) formed a new joint venture to develop Class-A multifamily residential communities across high-growth metropolitan areas in the U.S. CPP Investments and LMC have allocated US$ 979 million in equity to the joint venture. CPP Investments will own a 96% stake and LMC will own the remaining 4%. The joint venture will focus on urban and suburban communities across major U.S. markets exhibiting strong population and job growth. The venture will launch with five seed assets: One in Boston, one in Miami and three in Denver, together totaling 1,371 apartment homes.
CPP Investments is keen on getting exposure to U.S. multifamily housing.
LMC, a wholly-owned subsidiary of Lennar Corporation (NYSE:LEN and LEN.B), is a multifamily real estate development and operating company with a diverse portfolio of institutional quality multifamily rental communities across the United States. As of November 30, 2021, LMC had a 42,000-home pipeline of communities ranging from operating to under pre-development that exceeds US$ 16.4 billion of high-rise, mid-rise and garden apartments.
