Ivanhoé Cambridge grows its portfolio of multiresidential buildings in San Francisco with Veritas Investments
Ivanhoé Cambridge announced the acquisition, with its partner Veritas Investments, Inc. (Veritas), of 11 multiresidential properties in San Francisco, California. These new investments of more than US$190 million bring to 20 the number of properties owned jointly by Ivanhoé Cambridge and Veritas, representing a total of 580 housing units to date.
These acquisitions are part of an ongoing residential property aggregation strategy by Ivanhoé Cambridge in San Francisco via an exclusive partnership created in 2014 with Veritas, a well-established investment and management company in San Francisco. An initial group of nine properties valued at nearly US$50 million was previously acquired, contributing to the strategy of building a critical mass in some of the city's key districts.
"We are very pleased with the excellent start to the implementation of our investment strategy with Veritas in San Francisco, reflected in a portfolio of very well-located assets with good value-creation potential," said Sylvain Fortier, Executive Vice President, Residential, Hotels and Real Estate Investment Funds, at Ivanhoé Cambridge. "Veritas is an excellent partner with which we want to grow large-scale critical mass in San Francisco in the mid-term."
For his part, Yat-Pang Au, Founder and CEO of Veritas, stated: "We are fortunate to have acquired such high-quality assets in one of the world's strongest markets for innovation, business, and quality of life. We are even more thrilled about teaming up with Ivanhoé Cambridge to create and capture value, as we share common culture and vision."
The acquired properties are located in some of the most favourable neighbourhoods in the centre of San Francisco, ranging from the traditional exclusive districts of Lower and Upper Nob Hill and Russian Hill to the trend-setting lifestyle neighbourhoods of NOPA, Noe Valley and The Mission.
Expansion and relocation by major technology and creative companies continue to draw the interest of large numbers of employees wishing to live in the heart of San Francisco, creating a favourable environment for the multiresidential rental market, as evidenced by a low vacancy rate and demographic factors that support long-term demand.