The Canada Pension Plan Investment Board (CPPIB) is investing AUD525m (€170m) in the Australian infrastructure sector.

The investment gives CPPIB 25% of NorthConnex, a tolled tunnel motorway scheme, worth AUD2.9bn, near Sydney.

Toronto-based CPPIB said the investment was made together with the Transurban Group and Queensland Investment Corporation.

The trio will build and operate the 9km asset, with completion due in 2019.

New South Wales and Australian Governments are also investing in the project.

Cressida Hogg, CPPIB managing director and head of infrastructure, said the project was in line with its strategy to invest in “attractive global infrastructure opportunities”.

CPPIB also owns a 25% interest in the Westlink M7 toll road, also in Sydney, bought through the purchase of the Intoll Group in 2010.

The deal adds to CPPIB’s CAD7bn (€5bn) investment in Australian real assets.

CPPIB last month committed to a mixed-use project in China in a joint venture with Longfor Properties.

The joint venture saw CPPIB commit CNY1.25bn (€180m) to the scheme. 

The investment by CPPIB followed last year’s decision to partner China Vanke, the largest residential developer in China, to invest $250m (€211m) in large cities across China.