CPPIB sale of $1bn property sale has collapsed amid COVID-19

CPPIB sale of $1bn property sale has collapsed amid COVID-19

CPPIB sale of $1bn property sale has collapsed amid COVID-19

The Canadian Pension Plan Investment Board (CCPIB) will not now sell its stake in a mixed-use development in London.

The office, restaurant, and retail development is in the Victoria district of the UK capital and is owned by a joint venture between CPPIB and Land Securities plc.

Bloomberg reported Friday that the sale of the Nova development to Singapore’s ARA Asset Management will not happen due to the havoc caused by the coronavirus outbreak.

The sale of the 50% stake would have netted the pension fund more than C$500 million.

Retirement funds are safe
Although none of the parties have commented on the story, separately CPP Investments, which manages the fund’s investments on behalf of Canadians, issued a statement of reassurance that it is “built for the long haul.”

Despite the risks created by the COVID-19 outbreak and its impact on the markets, Mark Machin, president & CEO of CPP Investments, said that “the sustainability of your CPP Fund remains secure.”

He added that, while the full impact of the coronavirus outbreak is yet to be known: “We believe strongly, however, that our long-term investing view, our deep bench of talent and expertise, and our highly-diversified portfolio will continue to serve the Canadians who depend on us for the safety of their retirements.”