The Canada Pension Plan Investment Board (CPPIB) has entered a joint venture with Hudson Pacific Properties on a San Francisco office property, its first in the West Coast city.
The Toronto-based pension fund said it has taken a 45% stake in the 1455 Market Street property from Hudson, paying $220m (€185.5m).
Hudson, which acquired the property in 2010, will continue to oversee management and leasing of the 1m sqft building.
Peter Ballon, CPPIB managing director and head of real estate investments in the Americas, said San Francisco is one of the “best-performing US office markets and a key strategic market” for the fund.
“Mid-Market’s favourable supply/demand dynamics, combined with the property’s unique scale, layout and high-quality tenant mix, make 1455 Market Street an attractive long-term investment and a solid entry into the region’s office sector,” Ballon said.
Victor Coleman, Hudson’s chairman and chief executive, said the joint venture with CPPIB lays a strong foundation to explore additional investment opportunities together.