CPP Investment Board

CPP Investment Board

May 13, 2011 07:01 ET

CPP Investment Board Advances U.S. Real Estate Strategy with Acquisition of Interest in 13 Regional Shopping Malls in New England

TORONTO, ONTARIO--(Marketwire - May 13, 2011) - The CPP Investment Board (CPPIB) announced today that it has acquired a 36.9% interest in the Mayflower partnership from institutional investors advised by JP Morgan Asset Management, for a total equity investment of US$350 million. The Mayflower partnership owns a portfolio consisting of 13 regional malls located in the United States mostly throughout the New England area. In aggregate, the portfolio has a total value of approximately US$2.03 billion.

Through the acquisition, CPPIB will become partners with Simon Property Group, Inc. (NYSE:SPG), the largest U.S. retail REIT, and Teachers Insurance and Annuity Associated – College Retirement Equities Fund (TIAA-CREF), one of the largest institutional real estate owners in the U.S., who will both retain their existing interests of 49.1% and 14% respectively. Simon Property Group, Inc. will continue to manage the assets on behalf of the partnership.

The portfolio comprises a 10.1 million-square-foot strategic footprint of well-established assets that primarily service the greater Boston area, and includes top-tier properties such as Northshore Mall in Massachusetts and the Mall at Rockingham Park in New Hampshire.

Peter Ballon, CPPIB's Vice-President, Head of Real Estate Investments - Americas, said, "This investment represents CPPIB's first major regional mall acquisition in the United States and we view this as an attractive entry point into the sector. This is also an excellent opportunity to partner with a leading management team and experienced institutional investor.

Mr. Ballon added, "Real estate is an attractive investment for the CPPIB. Our overall objective is to build a portfolio that will deliver stable returns and retain its relative value across multiple business cycles. The Mayflower portfolio meets these criteria."

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.

Contact Information

  • The CPP Investment Board
    Linda Sims
    Director, Media Relations
    (416) 868-8695
    lsims@cppib.ca