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Ivanhoé Cambridge buys more Silicon Valley apartment buildings

By Ilaina Jonas

NEW YORK, Oct 9 (Reuters) - Ivanhoé Cambridge Inc hasexpanded its apartment ownership in Silicon Valley, spending$234 million for a project under construction and an existingbuilding, the real estate arm of Canadian pension fund Caisse dedépôt et placement du Québec said Tuesday.

Ivanhoé Cambridge said it spent $63 million, which includes$2.5 million for upgrades, to buy Kimberly Woods, a 208-unitbuilding near four other complexes it already owns.

It also plans to invest $171 million to build ICS TransitVillage, a 648-unit five-story project, with U.S. company SheaProperties. Ground breaking is scheduled for spring 2013, withconstruction expected to be completed by the end of 2015.

The project is located near Hitachi, Kaiser Hospital and IBMResearch and will be an easy trip to Apple Inc's

new campus for 13,000 employees.

The two projects will bring Ivanhoé Cambridge's apartmentholdings in the tech-heavy Silicon Valley to nearly 2,300 units.

Ivanhoé Cambridge has plans to own apartment buildings in 10global cities. In addition to Silicon Valley, its U.S. apartmentholdings include buildings in New York. It owns apartments inMontreal and London and plans to enter Washington, D.C., Boston,Los Angeles, Toronto, Vancouver and Paris.

About 75 percent to 80 percent of Ivanhoé Cambridge's $32billion real estate portfolio is in office buildings or retailreal estate, such as malls and shopping centers.

The company wants about 10 percent or 12 percent of theportfolio to be in residential real estate, up from its start of4 percent, Sylvain Fortier, president of Ivanhoé Cambridge'sresidential unit. That would be about $3.5 billion, includingdebt.

(Editing by Andre Grenon)

((ilaina.jonas@thomsonreuters.com)(1 646 223 6193)(ReutersMessaging: ilaina.jonas.reuters.com@reuters.net))

Keywords: USPROPERTY IVANHOECAMBRIDGE/