A Canada Pension Plan Investment Board (CPPIB) subsidiary has committed €200m to Finnish retail specialist Citycon and is taking a 15% stake in the listed company.

Citycon said it had raised a total of €400m from investors, half of which came from a directed share issue to CPP Investment Board European Holdings (CPPIBEH), a wholly-owned subsidiary of CPPIB.

CPPIBEH’s 15% stake will be put to shareholders next month at an extraordinary general meeting.

CPPIBEH will be joined by Gazit-Globe and the Ilmarinen Mutual Pension Insurance Company – both existing shareholders – in a rights issue.

Two new board members nominated by CPPIBEH will replace two existing members of Citycon’s board.

Graeme Eadie, CPPIB senior vice-president for real estate investments, said the deal would enable the fund to expand its retail platform in the Nordics.

Citycon said it would use proceeds to pay down €300m debt and deleverage.

CPPIB and Citycon first joined forces in late-2012, buying Stockholm retail asset Kista Galleria, for around €530m.