The Canada Pension Plan Investment Board (CPPIB) and Longfor Properties Company have formed a new joint venture for a major mixed-use development project in Suzhou, located in China’s Jiangsu Province.
The joint venture was formed last month with the CPPIB committing RMB1.25 million (C$234 million) to jointly develop the Times Paradise Walk project in Suzhou, which has a population of 10 million. It is the fifth-most affluent city in the country.
The mixed-use development is an integrated project comprising residential, office, retail and hotel space covering a total gross floor area of 735,000 square metres. It’s scheduled to be completed in multiple phases between 2016 and 2019.
“This is CPPIB’s first direct joint venture in a mixed-use development in China, and we are pleased to be doing this alongside Longfor, a well-respected and experienced developer in China,” says Jimmy Phua, managing director, head of real estate investments, Asia, for CPPIB. “We look forward to building a long-term strategic partnership with Longfor that will allow CPPIB to continue to invest in large-scale, mixed-use and retail projects in China, a market in which we see long-term growth potential.”
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