CPP Investment Board

CPP Investment Board

May 13, 2011 07:00 ET

CPP Investment Board Acquires 50% Interest in CentrO Oberhausen, a Premier German Shopping Centre, From Stadium Group

TORONTO, ONTARIO and LONDON, UNITED KINGDOM--(Marketwire - May 13, 2011) - The CPP Investment Board (CPPIB) and Stadium Group announced today that CPPIB has acquired a 50% joint venture interest in CentrO Oberhausen, a premier super-regional shopping and leisure centre in Germany, valued at €1.3 billion, from Stadium Group (Stadium). CPPIB's equity investment is €270 million. Stadium will retain its 50% interest in CentrO and will continue to manage the shopping centre.

CentrO is a 1.6 million-square-foot (150,000-square-metre) dominant destination shopping and leisure centre with fashion, entertainment and dining options. Located 40 kilometres north of Dusseldorf, CentrO draws from a population of approximately 11.7 million people that live within a 60-minute drive of the complex in both Germany and the Netherlands.

Graeme Eadie, CPPIB's Senior Vice-President, Real Estate Investments, said, "We are very pleased to be acquiring a significant interest in what is widely regarded as one of the top large-scale regional shopping centres in Europe. Our joint venture with Stadium is fully aligned with our European real estate investment strategy and represents a rare opportunity to invest alongside a proven, reputable partner in a high-quality shopping centre that has a history of income growth and demonstrated resilience to economic downturns and inflation."

Stadium founder Eddie Healey said, "We are excited to be working with a strong capital partner in CPPIB that shares our long-term commitment to this exceptional asset. Together, we will continue to evolve and grow Germany's premier destination shopping and leisure centre over the coming years."

The joint venture will complete a 180,000-square-foot (17,000 square metre) extension by the end of 2012, anchored by a 85,000-square-foot (7,800 square metre) Peek & Cloppenburg department store. The extension is expected to attract an additional customer profile to the shopping centre.

About The CPP Investment Board

The CPP Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan 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, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At December 31, 2010, the CPP Fund totaled C$140.1 billion. For more information about the CPP Investment Board, please visit www.cppib.ca.

About Stadium Group

Stadium Group is a private group of companies specializing in retail property development, investment and asset management in the United Kingdom and Germany. Stadium, whose largest asset is CentrO, also owns a portfolio of retail parks in the UK.

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