The Canadian Pension Plan Investment Board (CPPIB), which funds Canadian public pensions, is investing heavily into commercial real estate to balance assets of $226.8 billion in an ultra-long term investment strategy.
CPPIB already holds interests in six downtown Vancouver office towers, mostly purchased four years ago, and the 530,000-square-foot Grandview Corners retail centre in Surrey, but most of its real estate holdings are in the U.S., Europe and Asia.
Recently, CPPI purchased a 45% stake in the $560 million, 20-storey One Park Avenue office in New York City. In Canada, CPPIB spent $200 million for an 85% stake in a 250-acre industrial development in Edmonton, being developed by WAM Development Group and Walton Group.
In all, CPPIB now holds more than 112 million square feet of commercial real estate and real estate represent 18% of total investments. Canadian real estate makes up 15.% of CPPIB property holdings, with the United States accounting for 35%, according to Graeme Eadie, CPPIB’s senior managing director and head of global real estate investments.
