Quebec Pension Fund and Walker & Dunlop Expand US Housing Investments

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Quebec’s public pension fund manager, Caisse de Depot et Placement du Quebec (CDPQ), and commercial real estate firm Walker & Dunlop Investment Partners (WDIP) are set to double their investment in US housing through their joint venture (JV). Launched nearly three years ago, the partnership initially targeted $250 million for preferred equity investments in student housing, manufactured housing, and multifamily properties. With the original allocation fully invested, they are now aiming for a $500 million expansion.

For CDPQ, this move aligns with a strategic shift to diversify its real estate portfolio, moving away from an overreliance on office and retail properties. The increased focus on housing aims to capitalize on stable returns in a challenging financial landscape.

High interest rates have strained property owners and developers, making financing for new projects difficult. WDIP President Mitch Resnick highlighted that preferred equity provides “a much-needed capital solution in the current lending environment,” ensuring that crucial housing projects can move forward despite tight credit conditions.

WDIP, a division of Walker & Dunlop Inc., boasts $15.6 billion in commercial real estate investments across a diverse portfolio. Eric Desjardins, senior director of US residential investments at CDPQ’s Ivanhoé Cambridge, expressed optimism about the partnership’s future, citing promising growth opportunities and the goal to maintain a leadership position in the market.