CANADA - Caisse de depot et placement du Quebec has purchased the real estate assets of Allied Capital Corporation and plans to acquire additional assets for a total of more than US$1bn.
The Caisse acquired the portfolio of commercial mortgage-backed securities (CMBS) and collateralised debt obligation (CDO) bonds and preferred shares of the Washington-based company. The firm has also entered into a letter of intent with Allied Capital to purchase the remainder of its commercial real estate assets in a transaction expected to close in the second quarter.
Once added to its existing portfolio, the Caisse will own a significant market share of CMBS in North America.
“This transaction provides a unique opportunity for the Caisse to acquire a large and diversified CMBS and CDO portfolio for its real estate financing portfolio,” said Richard Dansereau, president of CDP Capital – Real Estate Advisory, a subsidiary of the Caisse.
“Furthermore, by this transaction CWCapital, one of our subsidiaries, will be acquiring special servicing and surveillance capabilities which will enhance its ability to maximise returns to the Caisse and other investors for whom the company provides investment management services.”
CWCapital will manage the assets, which will see its assets under management increase to nearly US$2bn.
The Caisse is a financial institution that manages funds primarily for public and private pension and insurance plans.
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