GLOBAL - The CAD155bn (€118bn) Canada Pension Plan Investment Board (CPPIB) has acquired a 45% stake in a real estate joint venture with a US real estate company.

CPPIB has agreed to invest $57.4m (€42.7m) to acquire a 45% stake in an office building in Midtown Manhattan from New York's commercial office landlord SL Green Realty.

The purchase price of the property was $252.5m, and New York Commercial Bank is providing the joint venture with $125m of floating-rate mortgage financing.

Peter Ballon, vice-president and head of real estate investments for the Americas at CPPIB, said: "This [acquisition] expands our real estate portfolio in New York City to interests in five prime office buildings in Manhattan."

In 2010, CPPIB made its first ever investment in Manhattan through a joint venture with SL Green Realty.

The pension fund invested $585m at the time in partial ownership stakes in two office buildings.

This included a 45% interest in 1221 Avenue of the Americas - otherwise known as The McGraw Hill building - for $500m.

An additional $76m of working capital and debt was committed as part of the transaction.

CPPIB also acquired a 45% stake in 600 Lexington Avenue for $87m of equity.

Andrew Mathias, president at SL Green, said: "The prestige and value of quality properties in the Plaza District of Midtown Manhattan is unparalleled.

"The chance to add an additional plaza asset to our core portfolio does not come along often, and, upon being presented with this unique opportunity, we took it."

CPPIB has made a series of acquisitions in the real estate space since the beginning of the year.

Earlier this month, the Canadian pension plan announced it had agreed to a nearly $5bn joint venture with Westfield that would see it acquire a portfolio of 10 malls in its largest single real estate transaction.