CPPIB goes down under for real estate venture
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17/05/2010 10:00:00 AM
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The Canadian Pension Plan Investment Board has announced it has co-invested in a new A$400-million fund with the Australian-based Goodman Group, with 80 per cent of it vested by CPPIB, one week after announcing its jump into the Manhattan real estate market.
The purpose of the new fund is to buy commercial real estate in Australia. The new Goodman Australia Development Fund's first project is the purchase of Goodman's Kmart development in Melbourne worth A$66.3-million. CPPIB also has interest in buying warehouse space to give it some access into the Australian logistics market.
CPPIB has seemed to lose the battle to buy the remaining stake of Transurban Group, the toll operator. CPPIB and others including Ontario Teachers' Pension plan have offered 3.7 billion dollars U.S. to buyout the rest of the investors in Transurban, but was rejected and as a result, OTTP announced it has sold its 12 per cent stake in the company.
This is the second fund CPPIB has formed with Goodman, a global property and investment group. Last year the two funds formed a 123-million dollar U.S. joint-fund to acquire land and property in China.