The Canadian Pension Plan Investment Board (CPPIB) revealed today the real estate portfolio of the Canada Pension Plan has increased in value to C$13.9 billion (€10 billion; $13.6 billion) reflecting 9.1 percent of its total assets.
The increase to September 30 reflected a second consecutive quarter in which the pension fund’s real estate assets have grown by about C$1 billion after they grew to C$12.6 billion over the first three months of its fiscal year.
CPPIB, which invests funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries, has been one of the more acquisitive institutional investors in 2011, notching up numerous investments across Europe, the Americas and Asia including a number of sector and geographical debut investments.
Among its investment highlights over the past three months CPPIB acquired a 45 percent interest in Plaza Frontenac, a 482,000 square foot shopping centre and a 26 percent stake in Saint Louis Galleria, both in St Louis Missouri. The investments were made alongside General Growth Properties, the US mall REIT.
CPPIB also invested C$244 million into a joint venture with Global Logistics Properties, the Singapore-listed logistics development and investment company in a deal reflecting its first foray into the Japanese market.
It invested C$292 million into a joint venture with London-based property investment and fund management company Grosvenor aimed at investing in offices in the West End and Midtown areas of the city.
Added to those was a C$29 million investment of a 45 percent stake in a 340,000 square foot office in Washington and a 32 percent interest in a JV owning two Manhattan, New York properties. One was an office, the other a mixed-use asset.
While real estate continued to grow, CPPIB, which is led by president and chief executive officer David Denison, said the pension fund’s total assets reduced in value by C$900 million to C$152.3 billion, resulting from an investment loss of C$1.2 billion or a negative 0.8 percent rate of return. It said that figure was partially offset by inflows of contributions of C$0.4 billion for the quarter.