MONTREAL – Ivanhoe Cambridge, the real estate arm of Quebec pension fund manager the Caisse de depot, has partnered with a leading San Francisco property manager to buy nine multiresidential properties in the California city for nearly US$50 million.
Ivanhoe and Veritas Investments plan to expand their portfolio, which initially includes 159 residential units in various central San Francisco neighbourhoods.
Ivanhoe Cambridge says Veritas’ deep market knowledge in the highly fragmented market will help it to build a “critical mass” in some of the city’s key districts.
The real estate subsidiary has been selling its portfolio of 70 hotels in Europe, the U.S., Canada, Barbados and India for about two years to concentrate on retail, office and residential multi-family units that generate more stable returns.
It will retain three luxury hotels in Quebec but has sold The Empress Hotel in Victoria and Ottawa’s Chateau Laurier. The Fairmont Royal York in Toronto are among the hotels that are up for sale.