CPPIB, BT Pension Scheme form real estate JV

BT Tower Central London
BT Tower in Central London

Canada Pension Plan Investment Board will invest 173.9 million ($262.9 million) to buy a 50% interest in eight Central London office buildings from BT Pension Scheme.

The investment is part of a new joint venture, confirmed a spokeswoman for the C$183.3 billion ($176.4 billion) CPPIB, which has a C$19.9 billion real estate portfolio.

The joint venture portfolio consists of core-plus/value-add properties primarily located in London's West End. BT Pension Scheme is entering into the joint venture through its in-house real estate investment management unit, Hermes Real Estate Investment Management Ltd.

The aim of the joint venture is to add more properties to the joint venture, possibly doubling the portfolio's size with new acquisitions of similar types of properties, the CPPIB spokeswoman noted.