CPP Investment Board

CPP Investment Board
Grosvenor Fund Management

July 21, 2011 09:00 ET

Grosvenor Fund Management and Canada Pension Plan Investment Board Form Joint Venture to Invest GBP 200 Million in London's West End Office Market

TORONTO, ONTARIO and LONDON, UNITED KINGDOM--(Marketwire - July 21, 2011) - Grosvenor Fund Management (GFM) and the Canada Pension Plan Investment Board (CPPIB) announced today that they have formed a joint venture partnership to invest up to £200 million in London's West End office market over the next two years. CPPIB will invest £190 million in this venture and Grosvenor Fund Management will invest £10 million and lead asset sourcing and management activities.

The Partnership's strategy is to invest in London's West End and Midtown value-added office opportunities. Scott Rowland, Commercial Fund Manager at Grosvenor Fund Management and the wider Grosvenor Fund Management team will use their extensive knowledge of this sector to identify opportunities to invest in value-add properties with shorter term lease profiles that can be refurbished to a Class A standard. The Partnership is targeting individual properties up to £100 million.

Wenzel Hoberg, CPPIB's Managing Director and Head of Real Estate Investments – Europe, said, "This venture with Grosvenor Fund Management provides us with an entry into an attractive, niche commercial real estate market in West End London. This investment aligns with our existing European real estate investment strategy and introduces us to a well-respected partner in Grosvenor Fund Management, which has a unique knowledge of the West End office market and strong active management and refurbishment expertise."

Commenting on the announcement, Mervyn Howard, Director Grosvenor Fund Management, said: "We are delighted to have formed this venture with CPPIB who share our belief in the future strength of the central London office market. Grosvenor and Grosvenor Fund Management have been active in the London office market through many cycles. We have the in-house skills to execute the strategy of the Partnership and believe the timing is right. It is a perfect complement to the strategy of the Grosvenor London Office Fund which currently owns four high quality, well let prime West End office properties.

About The Canada Pension Plan Investment Board

The Canada Pension Plan Investment Board (CPPIB) 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 CPPIB 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 CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At March 31, 2011, the CPP Fund totaled $148.2 billion. For more information about CPPIB, please visit www.cppib.ca.

About Grosvenor Fund Management:

Grosvenor launched its first fund in 1976 and formally established Grosvenor Fund Management (GFM) in 2005. GFM offers a range of sector and regional specialist property investment funds which aim to deliver attractive, risk adjusted returns. Operating from offices in China, France, Italy, Japan, Luxembourg, Spain, the UK and the USA we employ professionals with local knowledge and skills to execute our investment decisions. Aligning our interests with our partners and building long-term investor relationships is of paramount importance to us. As at 31 December 2010, Funds under Management were £3.8bn with 70 investor partners in 24 funds and separate account mandates. For further details, please see our Annual Report & Accounts available at www.grosvenor.com.

Contact Information