PAG, an Asia-focused alternatives investment manager, and Canada Pension Plan Investment Board, Toronto, have acquired Tokyo-based Commerz Japan Real Estate Finance Corp. from Commerzbank AG, said an announcement Friday from the firm formerly known as Pacific Alliance Group.
The purchase by the investment consortium, comprising two PAG funds — the $1.5 billion Secured Capital REP V and $1 billion Pacific Alliance Special Situations fund — and the C$219.1 billion (US$204.1 billion) CPPIB, includes a roughly €700 million portfolio of subordinated loans, to be managed by PAG's Tokyo-based Secured Capital Investment Management.
PAG spokeswoman Stephanie Barry said details on the purchase price and the respective shares of PAG and CPPIB aren't being disclosed.
J.P. Toppino, managing partner of PAG Real Estate, said in a news release Friday that the acquisition of the largely Tokyo-based commercial real estate firm comes at a moment when growing interest in the Tokyo market from domestic and foreign investors is boosting property values there.
