(Yicai Global) July 13 -- Chinese investment holdings group Longfor Properties has inked a deal with Canada Pension Plan Investment Board to work together on a USD817 million funding platform for long-term rental apartments in China.

The two parties will provide financing to Longfor brand Guanyu through the investment platform with a focus on first and second-tier cities, the Chongqing-based firm said in a statement.

Guanyu has offers some 15,000 rental properties spanning 17 cities across the country, expected to rise to 65,000 this year.

Toronto-based CPP Investment Board aims to use the platform to capitalize on skyrocketing demand in the country for premium rental housing among young professionals and new graduates, said Jimmy Phua, managing director of CPP Investment Board's Asian real estate investments unit, adding that the firm had been looking to cooperate with a well-established and experienced operator like Longfor.

CPP Investment Board invests funds not needed by the Canadian Pension Plan to pay current benefits on behalf of 20 million contributors and beneficiaries. CPP funds totaled some CAD356.1 billion (USD270 billion) as of the end of the first quarter this year.

Editor: William Clegg