Behringer Harvard REIT forges new $300M co-investment with PGGM Real Estate Fund
Behringer Harvard Multifamily REIT I Inc said it had agreed to a new $300 million agreement with PGGM Private Real Estate Fund to co-invest in multifamily communities. The new deal is an expansion of a previous arrangement where PGGM committed $300 million in separate tranches of $100 million to co-invest with Behringer Harvard Multifamily REIT.
Based in Dallas, Behringer Harvard Multifamily REIT I Inc is a real estate investment trust. It focuses on investing, developing and operating multifamily communities in the top 50 Metropolitan Statistical Areas of the US. Its portfolio currently includes investments in 56 multifamily communities comprising 15,861 apartment homes in 13 states. Meanwhile, PGGM is an investment vehicle for pension funds in the Netherlands. It runs the pension assets of over 2.5 million pensioners amounting to about $210 billion.
A statement about the deal read that PGGM and Behringer Harvard Multifamily have worked together since May 2007. For each co-investment asset, Behringer Harvard typically owns 55% while PGGM has a 45% stake. From the start of the relationship until September 30 this year, PGGM has co-invested with the Dallas-based REIT in 28 multifamily communities worth $1.6 billion in total capitalized cost.
With the new co-investment deal, both firms expect to pour $1.3 billion in multifamily communities in the next several years.
Behringer Harvard Multifamily REIT I Inc President and Chief Operating Officer Mark Alfieri said in the statement, "We are excited about this new increase in our PGGM co-investment platform. It represents a significant opportunity to grow the REIT's portfolio and create additional value for our shareholders. We are pleased to extend our relationship with an institutional real estate investor of the highest caliber. We believe that PGGM's decision to increase, once again, its investment in our U.S. multifamily platform provides further recognition from a highly sophisticated institutional investor of the REIT's investment strategy."