CPPIB makes foray into US single family developments

CPPIB makes foray into U.S. single-family developments amid housing shortage. Canada’s national pension fund struck its first partnership to build and rent out single-family homes in the U.S., joining a rush to capitalize on a housing shortage.

Canada Pension Plan Investment Board will join with Greystar Real Estate Partners LLC, the largest property manager in the U.S., to build and acquire communities of single-family rental properties there, according to a statement Wednesday. CPPIB will own 95 per cent of the US$840 million joint venture and Greystar 5 per cent.

The surging price of homeownership in the U.S. has forced many families to consider renting single-family houses instead of buying, helping turn such properties into one of the hottest asset classes over the course of the pandemic. More than US$30 billion has been committed to rental houses since 2020, according to deal announcements compiled by John Burns Real Estate Consulting.

“This reflects the fact that there is large pent-up demand for housing in general,” Peter Ballon, the global head of real estate at CPPIB, said in a telephone interview. “Renters who choose to rent would prefer a variety of types of housing options.”

Though other Canadian real estate companies such as Tricon Residential Inc. and Great Gulf Group have joined the gold rush in U.S. rental homes, there hasn’t been the same interest in such ventures in Canada, despite an even more severe housing shortage. As home prices have surged in a country obsessed with ownership, one developer’s plan to acquire and rent out single family homes sparked controversy earlier this year, while a scarcity of available land near major cities also makes new construction difficult.

Asked why CPPIB isn’t building single-family rental homes in Canada, Ballon suggested the country’s smaller population makes the economics of such projects more difficult — though the pension fund is developing apartment buildings there.

“You need a certain scale for sectors to thrive and quite often you’ll see things in the U.S. that you don’t see anywhere else in the world,” he said. “We need both returns for our stakeholders as well as scale to do it efficiently.”

CPPIB’s latest partnership with Greystar follows on a US$389-million venture they announced in January to develop apartment buildings in the U.S.

All 22 WHL Clubs had equal opportunity to obtain the first-overall selection. The Club designated to select first overall in the first round will then select last in the second round (44th overall). The Club designated to select second overall in the first round will then select second last in the second round (43rd overall).

Likewise, the team with the final pick in the first round will have the first pick in the second round. This pattern of selection repeats until all 22 WHL Clubs have had the opportunity to make two selections in the 2021 WHL U.S. Priority Draft.

Players eligible for the 2021 WHL U.S. Priority Draft are 2006-born players who reside in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming.

Players not selected in the 2021 WHL U.S. Priority Draft will remain eligible to be selected in the 2021 WHL Prospects Draft on Thursday, December 9, or listed by a WHL Club at any time thereafter.

“We’ll be a sanctuary,” Newsom said, adding he’s aware patients will likely travel to California from other states to seek abortions. “We are looking at ways to support that inevitability and looking at ways to expand our protections.”

California already pays for abortions for many low-income residents through the state’s Medicaid program. And California is one of six states that require private insurance companies to cover abortions, although many patients still end up paying deductibles and co-payments.

But money won’t be a problem for state-funded abortion services for patients from other states. California’s coffers have soared throughout the pandemic, fueling a record budget surplus this year. Next year, the state’s independent Legislative Analyst’s Office predicts California will have a surplus of about $31 billion.

California’s affiliates of Planned Parenthood, the nation’s largest abortion provider, got a sneak preview of how people might seek abortions outside their home states this year when a Texas law that outlawed abortion after six weeks of pregnancy was allowed to take effect. California clinics reported a slight increase in patients from Texas.

Now, California abortion providers are asking California to make it easier for those people to get to the state.

The report recommends funding — including public spending — to support patients seeking abortion for travel expenses such as gas, lodging, transportation and child care. It asks lawmakers to reimburse abortion providers for services to those who can’t afford to pay — including those who travel to California from other states whose income is low enough that they would qualify for state-funded abortions under Medicaid if they lived there.

It’s unclear about how many people would come to California for abortions if Roe v. Wade is overturned. But a recent report by the Guttmacher Institute, a research group that supports abortion rights, estimated about 1.3 million more women would drive to California to seek abortions. The institute predicts most of them would come from Arizona, which has a law on the books that would outlaw abortion once it becomes legal to do so.

“That will definitely destabilize the abortion provider network,” said Fabiola Carrion, interim director for reproductive and sexual health at the National Health Law Program.

That’s why the report asks lawmakers to give scholarships to medical students who pledge to offer abortion services in rural areas, help them pay off their student loans and assist with their monthly liability insurance premiums.

“We’re looking at how to build capacity and build workforce,” said Jodi Hicks, CEO of Planned Parenthood Affiliates of California. “It will take a partnership and investment with the state.”

Abortion opponents in California, meanwhile, are also preparing for a potential surge of patients from other states seeking the procedure — only they hope to convince them not to do it.

Jonathan Keller, president and CEO of the California Family Council, said California has about 160 pregnancy resource centers whose aim is to convince women not to get abortions. He said about half of those centers are medical clinics, while the rest are faith-based counseling centers.

Many of the centers are located near abortion clinics in an attempt to entice people to seek their counseling before opting to end pregnancies. Keller said many are already planning on increasing their staffing if California gets an increase of patients.

“Even if we are not facing any immediate legislative opportunities or legislative victories, it’s a reminder that the work of changing hearts and minds and also providing real support and resources to women facing unplanned pregnancies — that work will always continue,” Keller said.

He added: “In many ways, that work is going to be even more important, both in light of Supreme Court’s decision and in light of whatever Sacramento decides they are going to do in response.”

Representatives from Prince Edward Island farms handed out potatoes to the public today in front of Parliament Hill, to show gratitude to their supporters and raise awareness of the effects of the export ban on Island spuds to the United States.

Two weeks ago, the Canadian government said it would suspend all shipments of fresh potatoes from the Island to the U.S. after the recent discovery of a fungus, called potato wart, growing on two potato farms.

John Visser, chair of the P.E.I. Potato Board and a potato farmer, says he hopes decision-makers will take notice of this effort and resolve the trade issue quickly.

Federal Agriculture Minister Marie-Claude Bibeau, who visited the event, says the government will pursue a scientific discussion with the U.S., with the objective of reassuring them as quickly as possible because Canada’s fresh potatoes are “definitely safe for everyone.”

Also in attendance was P.E.I. Premier Dennis King, who says the gesture was a demonstration of importance of the industry to the Island, adding that when the industry hurts, everyone hurts.

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