CANADA/US - Canada Pension Plan Investment Board CPPIB) has entered a joint venture with General Growth Properties to acquire a stake in two US shopping malls.
CPPIB will partner with GGP to buy Plaza Frontenac in St. Louis, Missouri, with GGP taking a 55% share and CPPIB holding the remaining 45%. As part of the deal, the pension fund will also take a 26% stake in GGP's Saint Louis Galleria mall.
Plaza Frontenac boasts 482,000 square feet of total leasable area and in-line sales of more than $500 per square foot, while Saint Louis Galleria is a super-regional mall with gross leasable area of more than 1 million square feet with in-line sales of more than $585 per square foot.
"This joint venture expands the geographic diversity of CPPIB's US real estate portfolio with the addition of two premier malls," said CPPIB vice president and head of Americas, real estate investments, Peter Ballon.
"We look forward to partnering alongside GGP whose experienced management team and proven track record are well-aligned with our strategy to acquire and hold high quality assets over the long term."
GPP chief operating officer Shobi Khan added: "Plaza Frontenac is certainly a retail gem in the Midwest and we couldn't be more thrilled to add it to our portfolio. As much as we are excited with the Frontenac acquisition, we're equally thrilled to form a prosperous, long-term relationship with CPPIB. CPPIB has a proven track record as a strong investment partner and sophisticated commercial real estate investor."
GGP is one of the largest shopping centre owners in the US, with ownership and management interest in 166 regional and super regional shopping malls in 43 states.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.