Canada Pension Plan Investment Board will acquire a 40 per cent interest in a shopping mall in Dalian, China for US$162 million.
This is the pension fund’s third announcement of a real estate investment in China in the past two weeks, following a $193 million investment in a Chinese shopping mall and a US$375 million investment in a Chinese private investment vehicle.
Read: CPPIB invests US$375 million in Chinese commercial real estate
Read: CPPIB invests $193M in Chinese shopping centre
The acquisition, from China’s Pavilion Group, is the pension fund’s first retail mall investment in Dalian, a major economic hub in northern China. In August 2015, CPPIB and Pavilion formed a joint venture to invest in Pavilion Damansara Heights, a mixed-use development project in Kuala Lumpur, Malaysia.
Read: CPPIB forms Malaysian joint venture
“Acquiring a stake in Pavilion Dalian is consistent with our real estate strategy of investing in high-quality, well-located retail assets with leading partners in the region,” said Jimmy Phua, managing director and head of real estate investments – Asia at CPPIB.
“We are pleased to expand our partnership with the Pavilion Group, through this acquisition, which we believe will provide attractive risk-adjusted returns over the long term.”
Read: E-commerce among growing investment opportunities in China