Canada Pension Plan Investment Board has made its first real estate investment in Malaysia.
The Canadian institutional investor has formed a joint venture with retail developer The Pavilion Group to invest in Pavilion Damansara Heights, a mixed-use development in Kuala Lumpur.
CPPIB is committing around MYR485m (€108m) for a 49% interest in the freehold development, which includes towers, luxury residences and a retail mall.
The development is located in an affluent area less than 10km from central Kuala Lumpur.
Jimmy Phua, CPPIB managing director and head of real etate investments Asia, said the joint venture fits well with its investment strategy.
The deal, he said, is a “great opportunity to work with a smart partner in a high-quality real estate asset that will provide attractive risk-adjusted returns over the long term”.
CPPIB this year committed ¥1.25bn (€170m) to a mixed-use project in China in a joint venture with Longfor Properties, following on from last year’s decision to partner China Vanke, the largest residential developer in China.
CPPIB also has investments in Australia and Hong Kong.