The CPP Investment Board (CPPIB) and Oxford Properties Group, the real estate division of OMERS, will expand their retail joint venture by each buying half of a mall that the other partner owns.
As part of the transaction, the CPPIB has acquired a 50% stake in the approximately one million square foot Upper Canada Mall, in Newmarket, Ont., from Oxford. And Oxford has bought a 50% interest in the 1.5 million square foot Les Galeries de la Capitale shopping centre in Quebec City from the CPPIB.
Financial terms of the deal were not disclosed.
“This transaction further establishes our retail joint venture with Oxford, expanding our relationship with one of our long-standing partners in Canada, which began in 2005 with an office joint venture,” says Peter Ballon, vice-president and head of real estate investments, Americas, with the CPPIB.
“This transaction is consistent with Oxford’s strategic plan, which has a focus on growing assets under management, including an emphasis on expanding our Canadian retail portfolio,” says Michael Kitt, Oxford’s executive vice-president.
Oxford will manage both properties on behalf of the partners, increasing the size of its Canadian retail portfolio under management to 12 million square feet.
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