CANADA - The Canada Pension Plan Investment Board (CPPIB) has acquired a 50% stake in a portfolio of commercial real estate portfolios owned by Oxford Properties Group, an Ontario Municipal Employees Retirement System (OMERS) company, for CAN$1bn.
The national portfolio comprises 11 commercial properties in Calgary, Edmonton, Montreal, Ottawa, Toronto and Vancouver. Oxford Properties, OMERS’ global real estate investment platform, has retained a 50% interest in the portfolio and is the board’s operating partner.
“This transaction significantly advances our plan to diversify the CPP reserve fund into high quality real estate and other real return assets,” said David Denison, president and CEO of CPP Investment Board. “Real estate offers attractive risk-adjusted returns that are a good match for the inflation-indexed benefits provided by the CPP.”
The properties include: Canterra Tower, Edmonton City Centre, Bell Tower, Place de la Cathedrale, Constitution Square, Royal Bank Plaza, Waterpark Place, One Financial Place, Guinness Tower, Marine Building, Oceanic Plaza.
Based in Toronto, the CPPIB invests funds on behalf of the CAN$81.3bn CPP reserve fund.
Oxford Properties Group is one of North America’s largest commercial real estate investment firms, managing CAN$10bn of real estate on behalf of its co-owners and owning CAN$7bn at share.
Pension freedoms could generate as much as £1.9bn a year in tax revenue for the next 10 years, according to research by the Pensions Policy Institute (PPI).
The Pension Protection Fund (PPF) has conceded it does not have "all the data we need to calculate" the impact of last month's ruling that some benefits may be unlawful.
A looming court decision on gender equalisation of pension schemes could hit FTSE 100 profits by up to £15bn, Lane Clark and Peacock (LCP) says.
Dutch custodian KAS Bank has created a fintech solution to help schemes save on costs and improve transparency of currency hedging strategies.