Canada Pension Plan Investment Board (CPPIB) and Pavilion Group have created a joint venture to invest in a mixed-use development project in Kuala Lumpur, Malaysia.
As part of the joint venture, CPPIB will commit about $170 million for a 49% interest in the development.
Representing CPPIB’s first direct real estate investment in Malaysia, Pavilion Damansara Heights is a freehold development integrating corporate towers, luxury residences and a retail galleria.
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The development is located in one of the most affluent locations in Kuala Lumpur, less than 10km from Petronas Twin Towers. Pavilion has developed several prominent retail malls, office and retail projects in the city.
“This joint venture fits well with our investment strategy as it provides us with a great opportunity to work with a smart partner in a high-quality real estate asset that will provide attractive risk-adjusted returns over the long term,” says Jimmy Phua, managing director and head of real estate investments Asia.
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