CPPIB reports increase in real estate assets

The C$153.2 billion Canadian pension plan saw its real estate assets under management grow 0.9% to 8.2% of total assets in the last quarter alone, thanks to something of a investing spree.

The Canada Pension Plan Investment Board (CPPIB) revealed today that its real estate investments had grown by almost 1 percent of total assets in the last three months following a number of large investments.

CPPIB said as it revealed its first fiscal quarter results for the year that its real estate assets had grown by 0.9 percent to 8.2 percent of total assets, reflecting C$12.6 billion (€8.9 billion; $12.7 billion) over the past three months. The sovereign wealth fund said its total assets had grown in the quarter to C$153.2 billion.

CPPIB  spent big over the quarter, clocking up a number of large investments in assets across the world. These included: the C$339 million investment for a 36.9 percent interest in the Mayflower Partnership, comprising a portfolio of 13 shopping centres in the New England area of the US; a $371 million investment for a 50 percent position in CentrO Oberhausen, a shopping centre near Dusseldorf in Germany; a C$470 million investment into the Northland Shopping Centre in Melbourne, Australia; and a C$285 million investment in a 50 percent stake in Hong Kong Interlink, a large industrial property in Hong Kong.

CPPIB , which invested the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries, said that its real estate investments, alongside its private equity investments, had helped produce a 0.9 percent return for the quarter.

David Denison, president and chief executive officer at CPPIB, said: “While major equity indices were down this quarter, the fund’s private equity holdings and real estate portfolio helped deliver positive results overall.”

Following its first quarter, CPPIB said the five-year period ended 30 June produced an annualised investment rate of return of 4 percent  and a return of 6 percent for the 10-year period ending the same date.