CPPIB invests in clean energy provider, OMERS subsidiary enters industrial property joint venture

Following its investment, the CPPIB intends to allocate more capital to Octopus Energy to help boost its smart grid capabilities and expand its green energy generation capabilities, according to a press release.

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Based in the U.K., Octopus Energy delivers green energy services to more than three million customers in the Italy, Japan, New Zealand, Spain, the U.K. and the U.S. Each year, it generates enough electricity to power two million homes, with its power supply coming from wind, solar and natural gas sources. Since 2020, it has operated electric vehicle charging stations.

The deal, which was spearheaded by the CPPIB’s sustainable energies group, is part of a strategy to capitalize on the global transition away from the reliance on fossil fuels, said Deborah Orida, senior managing director, chief sustainability officer and global head of real assets, in the press release.

“In the decades to come, some of the most rewarding long-term investment opportunities in the global economy rest among those businesses that will enable, evolve and innovate along the path to a net-zero world. As a large, long-term investor, we are well-positioned to continue our leadership in investing in the whole economy evolution required by climate change. This investment and partnership with Octopus Energy . . . is a perfect example of how investors can work with leading tech-enabled energy companies to digitally disrupt the global energy system and support the evolution to a low-carbon world.”

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In other news, the real estate arm of the Ontario Municipal Employees’ Retirement System is entering a joint venture with a real estate developer to expand its industrial property portfolio.

The OMERS subsidiary Oxford Properties reached a deal with EverWest Real Estate Investors to jointly acquire US$1 billion of industrial properties located across the U.S. The venture will target core-plus, value-add investments and developments, according to a press release, which noted it will focus on infill industrial properties that are proximate to major industrial cities in the U.S.

At its launch, the joint venture had already acquired six properties valued at US$160 million. Combined, the properties have an area of about 100,000 square metres, located in Arizona, California, Colorado, Oregon, Tennessee and Texas.

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According to the terms of the deal, Oxford Properties will provide the primary source of capital and drive overall strategy, while EverWest will lead the acquisition and day-to-day operations for each asset. In a press release, Ankit Bhatt, vice-president of investments at Oxford Properties, said the investment fill the U.S. industrial sector’s immediate need for property aggregation.

“With strong market fundamentals and growth prospects, industrial remains one of our highest conviction sectors and core to Oxford’s North American strategy.”