Canada Pension Plan Investment Board, Toronto, formed a joint venture with Health Care REIT to manage a 50.5% interest in a portfolio of medical office buildings in three California cities: Beverly Hills, Los Angeles and San Diego.
It’s the first investment in health-care real estate for the CPPIB. The remaining stake is held by another health-care real estate investment trust, G&L Realty, said May Chong, CPPIB spokeswoman. G&L sold the majority stake to Health Care REIT in June, and the CPPIB took on 45% of that majority stake when it created the joint venture with Health Care REIT.
The joint venture could acquire G&L’s remaining stake should it decide to sell.
CPPIB did not disclose the terms of the deal with Health Care REIT. The complete portfolio is valued at $449 million.
The CPPIB manages the assets of the C$264.6 billion ($202.8 billion) Canada Pension Plan, Ottawa, with C$34.1 billion invested in real estate, both as of March 31.