Canada Pension Plan Investment Board, Toronto, and Singapore sovereign wealth fund GIC have established a co-investment program with office property developer Boston Properties for future acquisitions of U.S.-based office properties.
The program will target office properties in Boston, Los Angeles, New York, San Francisco, Seattle and Washington, confirmed Frank Switzer, managing director, investor relations for CPPIB.
GIC has allocated $500 million to the program, while CPPIB and Boston Properties have each allocated $250 million.
The agreement calls for CPPIB and GIC to have exclusive first offers to form joint ventures with Boston Properties to invest in acquisition opportunities over the next two years.
"Employers in top global cities continue to seek best-in-class office environments that will attract and retain talent," said Peter Ballon, CPPIB's managing director, global head of real estate, in a news release Wednesday from the three partners. "By expanding our relationships with both Boston Properties and GIC in this new program, we will be strongly positioned to serve this ongoing market need, and in turn generate returns for our fund contributors and beneficiaries."
CPPIB and GIC have partnered on multiple real estate joint ventures in the past, including the 2015 establishment of a partnership to acquire the D-Cube retail mall in Seoul from Daesung Industries for $263 million.
The Canada Pension Plan Investment Board had C$497.2 billion ($394.2 billion) in assets as of March 31, while GIC has an estimated $400 billion in assets.