The Canada Pension Plan Investment Board (CPPIB) has purchased a 50% stake in a South Korean real estate investment trust for $118.6 million.
Samsung SRA Private Real Estate Invest Trust No. 4 is a single-asset fund that owns a high-quality office development property in Seoul.
The property is 100% pre-leased and will be the headquarters for Samsung SDS, the IT services division of Samsung Group.
“We see this investment as an attractive entry point into the Korean market,” says Graeme Eadie, the CPPIB’s senior vice-president and head of real estate investments. “As Asia’s fourth largest economy, South Korea is a key market with stable long-term growth prospects.”
The 30-storey building is scheduled to be completed by May 2014.