The Canada Pension Plan Investment Board(CPPIB)has committed US$500 million to the U.S. commercial real estate market in a deal with TIAA-CREF.
“Our investment significantly increases our exposure in the U.S. real estate market which supports our focus of diversifying the overall CPP Investment Board portfolio by product type and geography,” says Graeme Eadie, senior vice-president of real estate investments.
The CPPIB contributed $300 million for a 49% stake in a joint venture that will invest in Class A office properties in the United States. The investment focus is on strategic acquisitions of partially leased office properties in stable or recovering metropolitan areas with at least 500,000 residents.
The CPPIB also made a $200 million investment in a TIAA-CREF Asset Management direct real estate investment strategy, which primarily focuses on institutional quality U.S. real estate assets.
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