The Canada Pension Plan Investment Board (CPPIB) and retail specialist Longfor Properties are entering a second joint venture in China.
The partnership is investing in the Chongqing West Paradise Walk shopping centre in China.
CPPIB will commit around CAD193m (€134m) for a 49% interest in the six-level property, making its first retail mall investment in Chongqing.
Jimmy Phua, managing director and head of Asian real estate investments at CPPIB, said: “This joint venture fits well with our investment strategy and allows us to invest alongside a highly experienced partner in a high-quality real estate asset that will provide attractive risk-adjusted returns over the long term.”
CPPIB and Longfor established their first joint venture in 2014 with a mixed-use real estate project in Suzhou, which included the development of a Paradise Walk mall.
Zhao Yi, executive director and CFO at Longfor, said West Paradise Walk was one of the firm’s “high-quality assets in Chongqing, a city with strong perspective of consumption and retail growth potential”.
Pinnacle Real Estate Capital Partners advised on the investment and will have an ongoing role with CPPIB and Longfor.
