APG of the Netherlands and Canada Pension Plan Investment Board (CPPIB) may team up again on further European real estate transactions following their EUR 1 bn joint purchase of 50% of the retail component of Westfield Stratford City. The massive mixed-use scheme forms the gateway to the 2012 London Olympic Games.
APG of the Netherlands and Canada Pension Plan Investment Board (CPPIB) may team up again on further European real estate transactions following their EUR 1 bn joint purchase of 50% of the retail component of Westfield Stratford City. The massive mixed-use scheme forms the gateway to the 2012 London Olympic Games.
Asked whether APG would consider more joint deals with CPPIB, Robert-Jan Foortse, APG's head of European non-listed property investments, told PropertyEU: 'Yes, most likely. In more general terms I think there are a few likeminded institutional investors out there in the market with whom we are all happy to work with in some shape or form, and we will meet each other in various deals.'
The Dutch pension group and CPPIB have a relationship stretching back several years. 'We are both investors in the Westfield UK Shopping Centre fund and so you see where this whole relationship started,' Foortse added.
Foortse said APG was keen to expand its exposure to the retail sector in the prime segment and that it favoured Northwestern European exposure. 'This acquisition fits all these criteria,' he noted
Both APG and CPPIB have employed joint venture structures for other large real estate investments in Europe this year. In May, APG teamed up with French retail specialist Altarea and life insurer Predica to acquire the Cap 3000 shopping centre in Nice for EUR 450 mln. And in March it backed a EUR 600 mln equity issue by Corio to fund its EUR 1.3 bn acquisition of a pan-European mall portfolio from developer Multi.
Meanwhile CPPIB teamed up with LaSalle to acquire a regional shopping centre in the city of Hürth, Germany for EUR 157.3 mln last November. And in the summer a joint venture of CPPIB and Hammerson acquired an office property in central London for over EUR 200 mln. That tie-up was preceded by their joint purchase of Glasgow's Silverburn mall for EUR 344 mln last December.
APG is the asset management vehicle for Dutch pension fund ABP. It manages around EUR 250 bn in pension capital of which about EUR 20.4 bn is invested in real estate via strategic and opportunistic strategies.
CPPIB has about CA$139 bn (EUR 100 bn) of assets under management, about 6.5% of which is invested in real estate.
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