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CPPIB continues China shopping spree with $162m deal

The Canadian investor has acquired a 40% stake in a Dalian, China shopping mall weeks after investing in a shopping center in Chongqing, China.

Canada Pension Plan Investment Board (CPPIB) has invested $162 million for a 40 percent stake in the Pavilion Dalian shopping mall in Dalian, China.

The Canadian investor has acquired the stake, which marks its first retail investment in the northeast China city, from the Pavilion Group.

Pavilion is one of the largest developers and operators of prime retail malls, high-end residential and Grade A office buildings in Malaysia. In August 2015, CPPIB and Pavilion formed a joint venture to invest in Pavilion Damansara Heights, a mixed-use development project in an affluent neighborhood in Kuala Lumpur, Malaysia.

“Acquiring a stake in Pavilion Dalian is consistent with our real estate strategy of investing in high-quality, well-located retail assets with leading partners in the region,” said Jimmy Phua, managing director, head of real estate investments – Asia, CPPIB.

The mall opened in April 2015 and is currently fully leased to a wide range of tenants including international and local brands. It is located in the heart of Dalian in the downtown Qingniwa area.

In October this year CPPIB made another China retail bet when it formed its second joint venture partnership with Longfor Properties to invest in a shopping center in Chongqing, China.

CPPIB acquired a 49 percent interest for around $146 million in Chongqing West Paradise Walk, a six-level shopping mall. The deal marked the Canadian investor’s first retail mall investment in the southwestern Chinese Tier 2 city.