The CPP Investment Board and a partner are jointly buying six seniors housing properties in Florida for US$555 million.
The Toronto-based retirement fund manager will own 45% of a new joint venture that will buy the Aston Gardens properties, which have a total of 1,930 rental units in low-rise buildings in several communities throughout Florida.
The other 55% of the joint venture will be owned by Welltower Inc. of Toledo, Ohio, which operates a real estate investment trust with 1,400 properties in the United States, Canada and the United Kingdom.
Discovery Senior Living will continue to operate the properties and have a 2.5% ownership stake in the portfolio, which will be owned 97.5% by the joint venture partners.
Two of the Aston Gardens properties are in Sun City Center and the other four are in Naples, Parkland, Tampa and Venice, Fla.
The CPPIB manages investments on behalf of the Canada Pension Plan, which is funded by employee and employer contributions. As of Dec. 31, it had $282.6 billion of assets under management.