NEWS
10/20/2015 16:08 EDT | Updated 10/20/2016 01:12 EDT

Caisse partners in US$5.3B purchase of Manhattan's largest apartment complex

MONTREAL — Quebec's pension fund manager is partnering with a private equity firm in a US$5.3-billion deal to buy Manhattan's largest apartment complex,

Ivanhoe Cambridge, the real estate arm of the Caisse de depot, and private equity firm Blackstone will buy the complex from CW Capital.

The deal will ensure that nearly half of the 11,232 units in the Stuyvesant Town and Peter Cooper Village complex will be preserved for middle-income families.

The developed has housed middle-income New Yorkers since the 32-hectare site on Manhattan's east side was built in 1947 for returning Second World War veterans.

About half of the complex's apartments have seen rents increase to market rates of up to US$10,000 per month.

Under the deal, about 4,500 apartments are to be reserved for middle-income families for at least 20 years. Another 500 would be kept for lower-income families. None of the new tenants will pay more than 30 per cent of their income in rent.

 

— With files from The Associated Press

The Canadian Press