A joint venture between the Canada Pension Plan Investment Board (CPPIB) and General Growth Properties (GGP) has purchased a Class A shopping centre in St Louis. Missouri. In addition, CPPIB has purchased a minority stake in another of GGP's malls, also in St. Louis.
According to an announcement from GGP, the Chicago-based shopping mall REIT and the C$153.2 billion (€110.2 billion, $148.8 billion) Canadian pension plan purchased Plaza Frontenac, a two-storey, 482,000-square-foot mall, from Davis Street Properties. Under the joint venture, GGP will own a 55 percent interest and CPPIB will own a 45 percent interest in the property.
Plaza Frontenac, originally completed in 1974 and renovated in 1994, is 96 percent leased. Both GGP and the CPPIB declined to disclose the closing price. At press time, Davis Street could not be reached for comment.
Peter Ballon, CPPIB's vice president and head of real estate investments in the Americas, said in a statement that the joint venture “expands the geographic diversity of CPPIB's US real estate portfolio.”
Additionally, as part of the transaction, CPPIB also will invest in GGP's Saint Louis Galleria, a three-storey, 1.2 million-square-foot mall. CPPIB’s acquired interest in that property will be 26 percent.