![CPPIB, Caisse invest in Manhattan](https://www.benefitscanada.com/wp-content/uploads/sites/7/2011/01/US_News.jpg)
The Canada Pension Plan Investment Board (CPPIB) and Ivanhoé Cambridge, the Caisse de dépôt et placement du Québec’s real estate arm, have both announced separate real estate transactions in Manhattan.
The CPPIB has invested an additional US$108 million ($115.7 million) to increase its ownership interest in One Park Avenue to 45% through a joint venture with Vornado Realty Trust. It previously held an indirect stake of approximately 11% through its investment in the Vornado Capital Partners Parallel LP fund. The parties valued the property at US$560 million, including the assumption of US$250 million of debt.
One Park Avenue is a 20-storey, 941,000-square-foot office building located on Park Avenue. Vornado Realty Trust will continue to manage the property.
“Our increased stake in One Park Avenue aligns with our U.S. office strategy to acquire high-quality assets in key markets,” says Peter Ballon, CPPIB’s vice-president and head of real estate investments – Americas, with CPPIB. “The property’s prime location and strong tenant base make this an attractive investment and diversify our holdings in Manhattan.”
Separately, Ivanhoé Cambridge and its partner, Callahan Capital Properties, have purchased a 49% interest in 330 Hudson in Manhattan for about US$150 million ($160.7 million) through a joint venture with affiliates of Beacon Capital Partners.
The 16-storey, 467,000-square-foot office building has been entirely transformed through its recently completed redevelopment, which included the addition of eight new column-free tower floors on a fully renovated historic stone-and-brick base building.
“330 Hudson is a leading example of the creative work environment that is increasingly desirable to the growing technology and media industries in Hudson Square, which is one of New York’s most promising urban live/work neighbourhoods,” says Adam Adamakakis, Ivanhoé Cambridge’ executive vice-president, U.S. investments.
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