Blackstone, world’s largest real estate investor, sees ‘significant’ opportunities in Canadian student housing, multi-family rentals and more

Blackstone Inc., the American authentic estate huge that declared programs to broaden its Canadian functions last month, suggests it intends to grow its portfolio of Canadian assets “significantly” in the coming yrs, with a focus on industrial area, multi-family rentals and pupil housing.

In an interview on Monday, Blackstone actual estate director Nadeem Meghji mentioned the company sees an chance to receive — and in some situations acquire — workplace place, household properties and extra in several Canadian cities.

“We have scale cash, and that enables us to commit seriously when we get excited about certain (property),” said Meghji. “Our hope and expectation is that we’re heading to expand our portfolio noticeably in Canada in the coming yrs.”

To date, Blackstone owns roughly 450 attributes in Canada — mostly warehouses and industrial area, along with a couple of office towers.

In the coming years, the firm says, it will be interested in business house for life-science technological know-how corporations and studio creation services for leisure providers.

“We’re looking at a information revolution … and a burgeoning lifestyle-science technologies ecosystem in some major Canadian metropolitan areas. There’s a way to convey a look at on these traits in technological know-how by purchasing challenging assets,” mentioned Meghji.

Janice Lin, a former Canadian Pension Strategy Financial investment Board govt who was tapped to helm Blackstone’s Canadian arm, said the organization also has a unique curiosity in intent-created university student housing in smaller sized city marketplaces, citing Kingston — home to Queen’s University — as an example.

“When you imagine of the housing that is accessible across main universities in Canada, there is not adequate supply, and not ample intent-developed pupil housing. So we’re thinking about: how can we strengthen source and establish up stock?”

“Student nodes would not be in downtown Toronto, for illustration,” additional Lin. “If you are on the lookout for college student housing, Kinston has a large college student foundation.”

1 variety of actual estate the enterprise is not investing in, Meghji mentioned, is Canadian solitary-family members households.

Due to the fact the outset of the COVID-19 pandemic, institutional buyers have faced sharp criticism for purchasing up one-spouse and children residences and reworking them into rental attributes, a tactic critics say is exacerbating an affordability crisis in Canada.

Blackstone’s May well announcement sparked dread among the housing advocates that the non-public-equity agency — which purchased far more than $5.5 billion really worth of solitary-family properties in the U.S. after the 2008 subprime home loan disaster — would test this system north of the border.

But the corporation has “no intention of investing in one-family houses in Canada,” Meghji explained to the Star.

“It’s just not our concentration. When we feel about the Canadian current market, we got most fired up about investing in true estate assets like logistics and city business office structures. To the extent we invest in rental housing, the target will be on multi-household rentals, and even that is a smaller proportion of our company.”

Blackstone’s Canadian attributes are really worth approximately $14 billion (all figures U.S.) in whole, the organization states. Globally, the business has a serious estate portfolio value close to $514 billion.

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