The Canada Pension Plan Investment Board (CPPIB) has formed its second joint venture partnership with Longfor Properties to invest in a shopping center in Chongqing, China.
CPPIB will commit approximately C$193 million ($146 million; 134 million) for a 49 percent interest in Chongqing West Paradise Walk, a six-level shopping mall.
The deal marks the Canadian investor’s first retail mall investment in the southwestern Chinese Tier 2 city.
“We are pleased to extend our existing relationship with Longfor Properties through this joint venture in West Paradise Walk, a well-located shopping centre in one of China’s largest cities,” said Jimmy Phua, managing director, head of real estate investments – Asia for CPPIB. “This joint venture fits well with our investment strategy and allows us to invest alongside a highly experienced partner in a high-quality real estate asset that will provide attractive risk-adjusted returns over the long term.”
CPPIB and Longfor Properties, a retail mall developer and operator in China, formed their maiden partnership in 2014 with a mixed-use development project.
“West Paradise Walk is one of Longfor’s high quality assets, located in Chongqing, a city with strong perspective of consumption and retail growth potential. Through our distinctive expertise in shopping mall operation and management, we look to bring value to our shareholders and partners,” added Zhao Yi, executive director and chief financial officer for Longfor Properties.