CPPIB sees growth partly due to RE investments

The C$161.6 billion pension plan made a number of sizable real estate investments during its fiscal year, including its largest real estate investment ever.

The Canada Pension Plan Investment Board (CPPIB) grew its net assets to C$161.6 billion ($158.4 billion, €124.4 billion) from C$148.2 billion for the 12-month period ending 31 March, according to the Canadian pension plan’s annual earnings statement released Thursday. 

CPPIB’s growth in assets were due in part to the pension making a number of sizeable investments in real estate during its fiscal year, including its largest real estate investment ever – a C$1.84 billion deal for a number of regional malls and redevelopment sites in the US. Other real estate investments by the pension include CPPIB’s first direct investment in Hong Kong, two retail investments in Brazil, a joint venture to develop Victoria Circle in London and a joint venture to develop an office tower in Toronto.

“Overall, our investment programmes delivered a strong performance in fiscal 2012 despite the challenging global equity markets over the past year,” said David Denison, president and chief executive officer of CPPIB, in a statement. “While we witnessed dramatic fluctuations in global capital markets, our diversification of assets and growing number of global investments contributed to the fund’s resilience.”

The CPPIB saw its return on real estate investments dip slightly to 13 percent during the 2012 fiscal year from 13.9 percent in 2011. Overall, the portfolio returned 6.6 percent for fiscal 2012, compared to 11.9 percent for fiscal 2011.

Additional reporting by Graham Winfrey