CPP Investment Board

CPP Investment Board
Kimco Realty Corporation
NYSE : KIM

Kimco Realty Corporation

April 21, 2010 16:11 ET

Kimco Realty and the Canada Pension Plan Investment Board Announce Joint Venture

NEW HYDE PARK, NEW YORK and TORONTO, ONTARIO--(Marketwire - April 21, 2010) - Kimco Realty Corporation (NYSE:KIM) and the Canada Pension Plan Investment Board (CPPIB) announced today that they have formed a joint venture to acquire prime neighborhood shopping centers throughout the U.S. The initial investment of $370 million includes five former PL Retail properties which Kimco purchased during the fourth quarter of 2009. These properties are located in well-established neighborhoods and anchored by national retailers including Costco and Wal-Mart.

CPPIB will acquire a 45% interest in the venture and Kimco will retain a 55% interest in addition to acting as the operating partner. As the operating partner, Kimco will manage the properties and earn asset management and other customary fees for a joint venture of this size and scope. CPPIB and Kimco intend to grow their joint venture over time through the acquisition of additional retail properties or portfolios.

Kimco President and CEO David Henry stated, "We are very excited about forming a long term partnership with one of the largest and most well regarded pension funds in Canada. CPPIB has an outstanding track record and wonderful staff of real estate professionals."

Peter Ballon, Vice-President, Head of Real Estate Investments – Americas, CPPIB said, "This investment represents a key opportunity for CPPIB to acquire a portfolio of high quality assets and invest alongside one of the largest and most experienced retail shopping center operators in the U.S. We look forward to growing this relationship through strategic acquisitions as we continue to expand our U.S. retail investment program." 

The five properties include:

Property Location GLA (sq.ft.)
Oakwood Plaza Hollywood, FL 871,723
Morena San Diego, CA 411,375
Redhawk Town Center Temecula, CA 345,113
Pentagon Centre Pentagon City, VA 337,429
Rancho San Diego El Cajon, CA 98,396

About Kimco

Kimco Realty Corporation, a real estate investment trust (REIT), owns and operates North America's largest portfolio of neighborhood and community shopping centers. As of December 31, 2009, the company owned interests in 1,478 retail properties comprising 152 million square feet of leasable space across 45 states, Puerto Rico, Canada, Mexico and South America. Publicly traded on the NYSE under the symbol KIM and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 50 years. For further information, visit the company's web site at http://www.kimcorealty.com.

About CPPIB

CPPIB is a professional investment management organization that invests the funds not needed by the CPP to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At December 31, 2009, the CPP Fund totaled C$123.9 billion.

CPPIB's Real Estate Investment group invests in commercial properties primarily through joint ventures with operating partners. The group's C$7.1 billion global real estate portfolio contains mostly office and retail properties located in major centers across Canada, the United Kingdom, the United States, Mexico, Brazil, Continental Europe and in the Asia–Pacific region.

For more information about CPPIB, please visit www.cppib.ca.

Contact Information

  • Media contacts:
    Kimco Realty Corporation
    Barbara Pooley
    Senior Vice President, Finance & Investor Relations
    1-866-831-4297
    or
    CPP Investment Board
    Linda Sims
    Director, Media Relations
    (416) 868-8695
    lsims@cppib.ca