The Canada Pension Plan Investment Board (CPPIB) has entered into a couple of real estate joint ventures in South Korea and Germany.
CPPIB and Singapore sovereign wealth fund GIC have agreed to acquire the D-Cube Retail Mall in Seoul, South Korea from Daesung Industries for US$263 million.
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GIC and CPPIB will each own a 50% stake in the mall, which was completed in 2011.
“We are excited about the opportunity to make our first retail investment in South Korea through this joint venture with GIC,” says Jimmy Phua, managing director, head of real estate investments Asia with CPPIB. “The D-Cube Retail Mall is a prime retail asset located in a growing and affluent area, and through this investment, we are pleased to gain exposure to one of the largest retail markets in Asia, working alongside experienced and aligned partners.”
Separately, CPPIB entered into an agreement to form a strategic joint venture with Unibail-Rodamco to grow its German retail real estate platform. The joint venture will be formed through CPPIB’s indirect acquisition of a 46.1% interest in mfi for €394 million. In addition, CPPIB will invest a further €366 million in support of mfi’s financing strategies.
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An existing joint venture partner of CPPIB through the CentrO Shopping Centre asset in Germany, Unibail-Rodamco is the second largest retail real estate investment trust in the world and the largest in Europe.
“This agreement allows CPPIB to build on our existing relationship with Unibail-Rodamco, Europe’s premier shopping centre operator, through this new joint venture in Germany,” says Andrea Orlandi, CPPIB’s managing director and head of real estate investments Europe. “As a long-term investor, this transaction provides us with the unique opportunity to achieve immediate scale in the retail sector in Europe’s largest economy.”
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