Canada Pension Plan Investment Board (CPPIB) and Longfor Properties have extended their partnership to develop mixed-use sites in Chengdu and Shanghai, China.

CPPIB will invest around RMB4.20bn (€536.3m) in the projects.

Jimmy Phua, the managing director and head of CPPIB’s real estate investments in Asia, said: “Both cities are well positioned to capitalise on the future economic growth and harness the returns of growing consumption in China.”

“These projects deliver on CPPIB’s strategy to grow our investments in the Chinese real estate sector, specifically in the fast-growing retail sector.

”The investments will help CPPIB diversify its real estate interests in China, providing attractive risk-adjusted returns over the long term,” Phua said.

The mixed-use development project in Chengdu, the capital of Sichuan province, is comprised of around 740,000sqm for residential and commercial use.

The Shanghai site is around 340,000sqm is situated in South Minhang. The project will comprise retail and commercial components.

Zhao Yi, the executive director and chief financial officer of Longfor Properties, said: “We look forward to further extending our cooperation with CPPIB. 

“These investments are another set of landmarks in our work together, following the Suzhou Times Paradise Walk and Chongqing West Paradise Walk projects.”

CPPIB and Longfor first collaborated in 2014 with a mixed-use real estate project in Suzhou, which included the development of a Paradise Walk mall.

A second joint venture was agreed in October 2016.