CPP solidifies relationship with Harbor Group

The Canadian pension giant has backed HGI's multifamily credit vehicle.

  • Name: CPP Investments
  • HQ: Toronto, Canada
  • AUM: CA$529 billion
  • Allocation to private real estate: 10%

CPP Investments acted as lead investor for HGI‘s latest multifamily credit offering, according to a press release from the Norfolk-based real estate investment management firm.

The $1.6 billion final closing for the HGI Multifamily Credit Fund is marked by a commitment of $585 million from CPP Investments, continuing a tenured relationship that has seen the Canadian pension back three HGI investment vehicles since 2019.

In 2020, CPP Investments was lead investor in HGI’s multifamily whole loan platform, committing $110 million. In 2019, CPP Investments committed $180 million to HGI’s Freddie Mac Supplemental Loan program.

The fund seeks to achieve attractive risk-adjusted returns by investing in US multifamily credit opportunities including senior mortgage loans, Freddie Mac K-series bonds, preferred equity and mezzanine debt investments and investments in securitized multifamily mortgage products.

CPP Investments currently allocates 10 percent of its total investment portfolio to private real estate, comprising of around CA$52.9 billion ($39.5 billion; €36.4 billion) in capital. The pension’s target allocation to the asset class is unknown.

As illustrated below, the CA$529 billion pension’s recent fund commitments have tended to focus on industrial vehicles which invest across the Asia-Pacific region.

Platinum subscribers may click here for the investor’s full profile, including key contacts, allocation strategy and fund investments.