CPP Investment Board

CPP Investment Board

September 20, 2010 09:00 ET

CPP Investment Board Acquires Interests in Eight Canadian Shopping Centres for $335.5 Million

Acquires 431,000-Square-Foot Hillside Centre in Victoria, B.C.

Acquires Additional Interests in 7 Canadian Shopping Centres

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2010) - The CPP Investment Board (CPPIB) announced today it has acquired interests in eight Canadian shopping centres for a total equity investment of $230.5 million. The gross purchase price of these acquisitions is $335.5 million including the proportionate assumption of $105 million of debt.

CPPIB has acquired the 431,000-square-foot Hillside Centre in Victoria, B.C. for a purchase price of $113.5 million from the Ontario Pension Board, the pension plan for Ontario public employees. Hillside Centre is a well-leased and well-situated regional mall.

Further, CPPIB has acquired from private real estate firm Osmington Inc. additional interests in a portfolio of 7 shopping centres with 5.4 million square feet of leasable space for a purchase price of $222 million. CPPIB now owns a 100% ownership interest in five properties within this portfolio, and a 90% interest in the other two properties.

Property Previous Ownership Interest Current Ownership Interest
Hillside Centre, Victoria, B.C. 0% 100%
Pine Centre Mall, Prince George, B.C. 80% 100%
White Oaks Mall, London, ON 80% 100%
Eastgate Square, Stoney Creek, ON 80% 100%
Sudbury Centre, Sudbury, ON 80% 100%
Intercity Shopping Centre, Thunder Bay, ON 80% 100%
Les Galeries de la Capitale, Quebec City, PQ 80% 90%
Carrefour de L'Estrie, Sherbrooke, PQ 80% 90%

Peter Ballon, CPPIB's Vice-President and Head of Real Estate Investments - Americas, said, "These acquisitions expand our footprint in the Canadian retail sector which is a strategic asset class within our real estate portfolio. Canadian regional malls of this quality seldom come to market and this was an excellent opportunity for us to invest in eight prime assets in key markets."

Mr. Ballon added, "Hillside Centre represents our first investment in Victoria and increases our presence in British Columbia. With the portfolio of 7 regional malls, we already have extensive knowledge of these assets through our existing majority ownership interests."

At June 30, 2010, CPPIB's real estate portfolio had an equity value of $7.9 billion, of which $3.6 billion represents Canadian real estate investments. CPPIB's portfolio consists primarily of office, retail and industrial properties located in major centres across Canada, the United Kingdom, the United States, Mexico, Brazil, continental Europe and in the Asia–Pacific region. For more information about CPPIB's real estate portfolio, please visit: http://www.cppib.ca/Investments/Inflation_Sensitive_Investments/real_estate.html

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 June 30, 2010, the CPP Fund totaled $129.7 billion. For more information about the CPP Investment Board, please visit www.cppib.ca.

Contact Information

  • CPP Investment Board
    Linda Sims
    Director, Media Relations
    (416) 868-8695