Tricon and CPPIB create joint venture to build rental housing in Toronto

Construction cranes line the hazy Toronto skyline. (Michelle Siu/ THE CANADIAN PRESS)

TORONTO — Rental housing company Tricon Residential Inc. and the Canada Pension Plan Investment Board have signed a deal to create a joint venture to develop rental projects in the Greater Toronto Area.

Under the agreement, CPP Investments will contribute up to $350 million, while Tricon will provide up to $150 million.

The joint venture will focus on developing rental apartments intended for a long-term hold.

Tricon will serve as the developer, asset manager and property manager.

The joint venture's first project is in Toronto's downtown and is expected to consist of two towers totalling 870 units.

Construction is expected to start on the site early next year with completion expected in 2025.

This report by The Canadian Press was first published March 23, 2021.