MONTRÉAL AND LONDON, July 2, 2025 – The Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors, and Goldman Sachs Alternatives today announced the formation of a strategic partnership (the “JV”) to invest in newly built single-family rental housing across key under supplied markets in Germany.
PSP Investments and Goldman Sachs Alternatives have initially targeted €550 million of equity to the JV’s investments, providing total investment capacity of c.€1.2 billion. PSP Investments will contribute 90% of the venture’s capital, while Goldman Sachs Alternatives will contribute the remaining 10% and serve as the investment manager of the partnership.
The partnership will target stabilised newly built and development assets from leading housebuilders, offering high-quality and energy-efficient homes in desirable suburban areas. These locations are selected for their proximity to schools, amenities and access to major cities and employment hubs. The JV is targeting a portfolio of approximatively 3,000 homes. The homes will be operated under a unified, tech-enabled platform and brand to ensure a consistent and professionally managed resident experience.
This partnership reflects both firms’ conviction in the long-term growth potential of the German rental housing market, supported by structural demographic trends, constrained homeownership affordability, and limited institutional supply. The JV will also prioritise sustainability considerations, including onsite renewable energy generation, electrification and energy efficiency to support the long-term viability of the housing stock.
Stéphane Jalbert, Managing Director, Head of Asia-Pacific and Europe, Real Estate Investments, at PSP Investments, said: “This partnership aligns with our strategy of investing in resilient sectors supported by long-term secular trends alongside top-tier partners. We believe in the long-term fundamentals of the German residential market and are confident that Goldman Sachs Alternatives’ local platform and disciplined approach will create lasting value”.
Richard Spencer, Head of Real Estate Investing in Europe at Goldman Sachs Alternatives, said: “We are excited to partner with PSP to invest in newly built, high quality single family residential assets in Germany, a market that is characterised by a steepening demand supply imbalance. This mandate fits well with our continued conviction in identifying investments underpinned by demographic and sustainability tailwinds.”
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $299.7 billion of net assets under management as of March 31, 2025. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn.
About Real Estate at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has more than $3.2 trillion in assets under supervision globally as of March 31, 2025. Established in 1991, Real Estate at Goldman Sachs Alternatives is one of the leading investors in real estate with over $60 billion in capital invested since 2012 across the spectrum of investment strategies from core to opportunistic and credit. The global team invests across all sectors with deep expertise across the capital structure, in assets ranging from single properties to large portfolios, through senior mortgages, mezzanine debt and equity.
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Media contacts
PSP Investments
Louis Bouchard
T: +1 438 468 8274
media@investpsp.ca
Goldman Sachs
Victoria Zarella
T: +1 917 343 8402