CANADA - CPP Investment Board (CPPIB), the investment arm of Canada's CA$121.3bn (€82bn) public pension fund, has upped its exposure to domestic prime commercial with the CA$64m (€43m) investment in an Edmonton office block.
It acquired a 40% share in the CA$160m Scotia Place from the formerly sole owner Morguard, a REIT, which will retain a 20% share in the property. An unnamed fund manager will acquire the remaining 40% stake.
CPPIB adds its latest acquisition to six existing investments in prime office, and a retail development, in the Alberta capital.
More than half of CPPIB's CA$6.2bn real estate assets are held in its domestic market.
The scheme declined to identify the likely yield on its latest purchase, saying only it expected "good returns" on an asset acquired in line with a strategy of owning core properties in strong markets.
"The scheme expects the Edmonton market to remain strong," said a spokesman.
"This property increases our exposure to top-tier office properties in Canada and it supports our focus to diversify our real estate portfolio both in Canada and globally.
"Typically, the CPP Investment Board looks to invest in real estate that has long-term growth potential. There are no targets per se but we look to maximise returns without undue risk of loss," he added.