Return to search

CPPIB buys 50% stake in two Canadian offices

The C$152.8 billion pension plan has acquired an interest in two Vancouver office properties, which it will jointly own with Oxford Properties.

The Canadian Pension Plan Investment Board (CPPIB) has purchased a 50 percent interest in two office buildings in downtown Vancouver from Alberta Investment Management Corporation. The pension has made an equity investment of C$115 million (€87.6 million; $115.9 million) in 401 West Georgia Street and 800 Burrard Street – properties valued at a total of C$230 million – before closing costs, adjustments and working capital.

“The downtown Vancouver office market is very attractive for long-term investors such as CPPIB,” said Peter Ballon, the pension’s vice president and head of real estate investments for the Americas, in a statement. The acquisition expands CPPIB’s Vancouver office portfolio to six properties totalling more than 1.5 million square feet. As of 31 December, the pension plan’s real estate investments totalled C$14.4 billion, or 9.5 percent of the fund.

Oxford Properties, the real estate subsidiary of the Ontario Municipal Employees Retirement System, will continue to own the other 50 percent interest. In addition, it will oversee the management and leasing activities for 401 West Georgia Street, a 270,000-square-foot office tower, and 800 Burrard Street, a 222,000-square-foot office building.

The transaction solidifies Oxford’s position as CPPIB’s largest real estate partner in Canada. Indeed, the two institutions are co-investors in two development projects: 1021 West Hastings Street, a 275,000-square-foot office skyscraper in Vancouver, and RBC WaterPark Place, a 930,000-square-foot office tower in downtown Toronto.