CPP Investment Board, Toronto, will commit up to US$125 million for a 39% stake in a real estate joint venture with Callahan Capital Partners and an unnamed U.S. pension fund, said Graeme Eadie, senior vice president, real estate, at CPP, the investment arm of the C$120.5 billion (US$120.2 billion) Canada Pension Plan, which has C$5.6 billion in real estate investments.
Callahan and its investors will retain a 22% stake, said Andrew Joa, a spokesman for Callahan. He declined to give specifics on other investors or name the Midwestern pension fund that committed to the remaining 39% stake.
The joint venture paid a total of $770 million in March for five office properties and a development parcel in downtown Denver. Callahan Capital partnered with Morgan Stanley’s Real Estate Special Situations Fund III in the deal, which included $450 million in financing.
CPP Investment Board’s commitment reflects the “more active strategy” it adopted two years ago, Mr. Eadie said. It is also attempting to buy a minority stake in Auckland International Airport in New Zealand.
