Canada Pension Plan takes stake in midtown Manhattan building

Canada Pension Plan Investment Board, Toronto, invested US$57.4 million in a new joint venture with commercial real estate landlord SL Green Realty, confirmed board spokeswoman Linda Sims.

The board, which oversees the C$152.8 billion (US$152.9 billion) Canada Pension Plan, has a 45% stake in the joint venture ownership of 10 E. 53rd St., a 37-story office building in midtown Manhattan, which was purchased by SL Green for US$252.5 million. New York Commercial Bank is providing the venture with five-year, US$125 million floating rate mortgage financing, according to a news release.

“This expands our real estate portfolio in New York City to interests in five prime office buildings in Manhattan,” said Peter Ballon, vice president and head of real estate investments, Americas, at CPPIB, in a news release.

The CPPIB previously invested a total of US$663 million in two deals with SL Green in May 2010 for 45% ownership in two commercial office properties, Ms. Sims said.

As of Dec. 31, the CPPIB has C$14.4 billion in real estate investments.