CPPIB’s real estate investment holdings totalled C$46.2bn in June 2018 and made up 12.6% of its $366.6bn portfolio.
The Canada Pension Plan Investment Board fund grew by $10.5bn during the quarter and achieved 10-year and five-year annualised returns of 8.0% and 12.3%, respectively, according to its Q1 results.
Mark Machin, president & chief executive officer, said: “While performance was solid across our investment departments, our private assets did particularly well. Global equity markets maintained positive performance this quarter, contributing to fund growth.”
It made a number of real asset and infrastructure acquisitions in the quarter to June, including the following:
- A C$175m equity target for a 20% interest in the newly established Goodman Brazil Logistics Partnership investing in prime logistics in São Paulo and Rio de Janeiro.
- Bought 49% of Enbridge’s interests in North American onshore renewable power assets and agreed to form a partnership to pursue European offshore wind investment.
- Acted as anchor investor in the first private infrastructure investment trust in India, known as IndInfravit Trust , investing C$200m for 30% of IndInfravit units.
- Entered a JV with GIC to buy Kumho Asiana Main Tower in Seoul, South Korea, for C$510m with each taking a 50% stake in the office tower.
- Partnered with ESR and subsidiary Kendall Square Asset Management to invest up to US$500m in a vehicle targeting modern logistics facilities in South Korea.
- Bought a prime logistics asset in Northern New Jersey for US$150m through the Goodman North American Partnership with Goodman Group.
- Formed a jv with WPT Industrial Real Estate Investment Trust and Alberta Investment Management Corporation to aggregate a portfolio of industrial properties in strategic U.S. logistics markets with an investment target of US$1bn of combined equity.
- Formed a JV with Boston Properties and completed the acquisition of Santa Monica Business Park in Santa Monica, California, for US$627.5m. CPPIB will have a 45% ownership in the park.
CPPIB is a professional investment management organisation that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 20m contributors and beneficiaries.
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