Canada Pension Plan Investment Board, Toronto, invested US$1.8 billion in a new joint venture with shopping center owner Westfield Group for interests in 10 U.S. regional malls and two redevelopment sites, confirmed board spokeswoman Linda Sims.
It is the largest global real estate commitment for the board, which oversees the investments of the C$152.8 billion (US$153 billion) Canada Pension Plan.
The US$1.8 billion investment represents a 45% interest in the joint venture; the properties in the joint venture have a total gross value of US$4.8 billion.
The transaction is expected to close during the first quarter. Upon completion, CPPIB will become one of the largest institutional owners of regional shopping centers in the U.S., according to a news release from the board, with interests in a total of 26 malls located in major urban markets.
As of Dec. 31, CPPIB's real estate investments totaled C$14.4 billion, 9.5% of the Canada Pension Plan's assets.
Westfield Group will serve as the managing general partner for the joint venture and will remain as the property manager, leasing agent and developer for the properties.
The CPPIB has two previous investments with Westfield, including a C$468 million investment in Westfield Stratford City in London and a 50% interest in the Westfield U.K. Shopping Center Fund; Ms. Sims did not know the size of the fund investment.