The Canada Pension Plan Investment Board is paying about US$57.4 million to acquire a 45% stake in a New York office building. The acquisition is part of a joint venture deal with SL Green Realty Corp., which is New York City’s largest commercial office landlord.
The purchase price of the 37-story, 390,000 square-foot property—10 East 53rd Street—in the Plaza district of midtown Manhattan was $252.5 million.
Peter Ballon, CPPIB’s head of real estate investments for the Americas, said the deal gives the pension fund “a significant interest in a high quality and extremely well located property which has the potential to be repositioned as a top boutique office property in Midtown Manhattan.” CPPIB’s real estate portfolio now includes interest in five office buildings in Manhattan.
At the end of 2001, CPPIB had nearly $153 billion in assets, about 9%—or $14.4 billion—in real estate.