The Canada Pension Plan Board has entered into a second joint venture with Longfor Properties Co. Ltd. to invest $193 million and a 49 per cent interest in a shopping centre in China.
The Chongqing West Paradise Walk, a six-level shopping mall built in 2008, represents the pension fund’s first retail mall investment in the city of 30 million.
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“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 at the CPPIB, in a release.
“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.”
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CPPIB and Longfor established its first joint venture in 2014 with a mixed-use real estate project in Suzhou, which included the development of a Paradise Walk mall.
“Creating value to our shareholders through developing, holding and operating Paradise Walk shopping malls is a well-established strategy for Longfor,” said Zhao Yi, executive director and chief financial officer of Longfor Properties, in a release.
“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.”
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