The Canada Pension Plan Investment Board (CPPIB) is making investments in two interesting areas.
Shopping centres
CPPIB has acquired interests in two prime Australian shopping centres through an equity investment of C$445 million in AMP Capital Retail Trust (ACRT), a trust that owns 50% of Macquarie Centre in Sydney and 80% of Pacific Fair Shopping Centre on the Gold Coast. CPPIB’s ownership interest in ACRT totals 37%.
“The addition of these two assets expands our retail portfolio in Australia and represents a rare opportunity to acquire interests in two high-quality and well-located retail shopping centres with excellent future expansion and growth potential,” said Graeme Eadie, senior vice-president, real estate investments, with CPPIB. “The properties are aligned with CPPIB’s long-term investment strategy to hold core assets over a long period. AMP Capital is one of the top shopping centre managers in Australia, and we look forward to building on our relationship with them in the future.”
“AMP Capital is delighted to be partnering with CPPIB as a new investor into two of Australia’s best-known and most attractive retail assets,” said Andrew Bird, director of property at AMP Capital Retail Trust.
CPPIB’s retail portfolio in Australia includes a 50% interest in Northland Shopping Centre in Melbourne as well as a 41.6% interest in the CFSGAM Property Retail Partnership, a trust that owns eight shopping centres across Australia, including an interest in two prime malls in Western Australia.
Motorcycles
The CPPIB has also struck a deal to acquire 39% of Dorna Sports, an event management, media and marketing company with global rights to the MotoGP motorcycle racing series. The agreement is part of a plan to expand Dorna through its acquisition of another motorcycle series, the FIM World Superbikes Championship.
CPP Investment Board will join Dorna’s management and European private equity firm Bridgepoint as a partner in the sports group.