Caisse de Depot et Placement du Quebec, Montreal, will purchase the commercial real estate assets of Allied Capital Corp. The deal is expected to close in the second quarter, said Lucie Freniere, spokeswoman for the C$102.4 billion (US$82.2 billion) pension fund.
The US$1 billion price includes a portfolio of commercial mortgage-backed securities, collateralized debt obligation bonds and preferred shares that Caisse already obtained from the real estate development company. The CMBS and CDO portfolio is backed by US$85 billion in mortgages on commercial real estate properties. CDP Capital-Real Estate Advisory, a Caisse subsidiary that manages C$22.8 billion in real estate assets, oversaw the transaction.
