The Canada Pension Plan Investment Board is investing in two new mixed-use real estate projects in China as part of its partnership with Longfor Properties Co. Ltd.
The projects include a mixed-use development in Chengdu, the capital of Sichuan province, that includes both residential and commercial use. In Shanghai, the development will include both retail and commercial components in one of the city’s fast-growing suburban areas.
“We are pleased to extend our existing relationship with Longfor Properties, one of the top real estate developers in China, through these development projects in Chengdu and Shanghai,” said Jimmy Phua, managing director and head of real estate investments for Asia at the CPPIB.
“Both cities are well positioned to capitalize on the future economic growth and harness the returns of growing consumption in China. These projects deliver on CPPIB’s strategy to grow our investments in the Chinese real estate sector, specifically in the fast-growing retail sector. The investments will help CPPIB diversify its real estate interests in China, providing attractive risk-adjusted returns over the long term.”
Longfor Properties is a residential and retail mall developer and operator in China that first worked with the CPPIB in 2014 on a mixed-use real estate project in Suzhou, China. It has so far opened 26 shopping malls. The CPPIB puts its total commitment at about $800 million.